Kilitch Drugs (India) Ltd said it was divesting its entire shareholding in its Ethiopian subsidiary, Kilitch Estro Biotech PLC (KEB) to HarmeeCare Pharmaceuticals, an Ethiopian State-owned enterprise, for $14 million.
The proposed transaction is part of the company’s strategy to optimise its portfolio, strengthen financial flexibility and accelerate investments in its pharmaceutical manufacturing operations in India, it said. “The divestment will enable capital reallocation towards higher-growth opportunities in India, debt repayment and expansion of core pharmaceutical business,” it added.
The funds will go towards reducing existing borrowings, lowering finance costs and supporting the phased expansion of its new manufacturing facility at Pen, Maharashtra, it said.
“Building on its established expertise in aseptic manufacturing, Kilitch Drugs plans to manufacture liquid injectable vials, lyophilised (freeze-dried) injectable vials and ophthalmic eye drops at the facility, and to develop and manufacture GLP-1 (Glucagon-Like Peptide-1) therapies, positioning it to participate in the fast-growing GLP-1 segment as patents on key molecules expire across various international markets,” it added.
The company also intends to pursue EU GMP (European Union Good Manufacturing Practice) and PIC/S (Pharmaceutical Inspection Co-operation Scheme) accreditations to expand its presence in regulated export markets, it said.
Bhavin Mehta, Whole-Time Director, Kilitch Drugs (India) Ltd, said: “The strategic divestment of our Ethiopian subsidiary will enable us to unlock capital, strengthen our balance sheet and accelerate our expansion plans in India. With our new Pen facility coming on stream in phases, we see significant opportunities to leverage our manufacturing experience, participate in emerging therapy segments such as GLP-1 and deepen our presence in international regulated markets.”
To maintain its commercial presence in Ethiopia, Kilitch Drugs will enter into a long-term supply and technical services agreement with HarmeeCare Pharmaceuticals, it said. The arrangement is expected to support the continued operations of the Ethiopian manufacturing facility while providing opportunities for an ongoing commercial relationship in the region, it added.
The divestment is expected to be completed by January 31, 2027, subject to shareholder approval, applicable regulatory requirements and completion of the necessary transaction documentation, the company said.
Published on October 23, 2026
