Generic drugmaker Natco Pharma is considering spinning off its agro business, a move for which it got an in-principle approval from the board on Thursday.
The board of directors has given in-principle approval to evaluate the demerger of the agro business of the into a separate entity. The management is of the opinion that the move will enable value unlocking of the core pharmaceuticals business and enhance long-term growth. Further, the demerger is also expected usher in operational flexibility, pave way for a focused and dedicated management for the businesses as also help different brand positioning for each legal entity, Natco Pharma said in a filing.
The company said as a part of the proposed reorganisation, it may retain a small minority stake in the resulting company as a measure to support the entity in terms of common services such as research and development and patents.
The board has authorised the management to undertake detailed evaluation of the proposed demerger suggesting optimal capital and shareholding structure, it said.
In Janaury 2019, Natco Pharma had announced plans to diversify into agrichemicals and as part of the foray said it will set up a manufacturing plant in Nellore, Andhra Pradesh, with an investment of ₹100 crore.
Published – September 25, 2025 11:12 pm IST
