The Chennai-based Refex group has roped in Brian Tempest, former CEO of Ranbaxy, and K Raghavendra Rao, former Managing Director of Orchid Pharma, as advisors for the group’s new pharma business. 

Refex has formed an ‘advisory board’ comprising three members – the third person is P V Pasupathy, former CEO of R L Fine Chemicals, which the Refex group acquired gradually between 2021 and 2023. 

The group has created a holding company, Anam Fine Chemicals, and has made R L Chemicals its subsidiary. RL Fine Chemicals, soon to be renamed Refex Life Sciences Ltd, will be the nucleus around which Refex will build its pharma business. 

The three-member advisory board has been tasked with growing the business of Anam Fine Chemicals Ltd from ₹420 crore today to ₹4,000 crore in five years, Refex group’s founder and Managing Director of the group’s flagship company, Refex Industries, Anil Jain, told businessline today.  

Tempest is a pharma industry veteran and has served several well-known healthcare companies such as Glaxo, Ranbaxy, Fortis and Glenmark. Kailasam Raghavendra Rao founded Orchid Chemicals and Pharmaceuticals in 1992 and was its Managing Director till the company ran into financial troubles and went into insolvency in 2017 (it was later taken over by Dhanuka Laboratories of Delhi). Rao, under whose leadership Orchid developed the first India-discovered drug to secure US FDA approval, will help Refex Life Sciences in new drug discovery, for which a team has been put together, Jain said. 

Acquisition of R L Fine Chemicals 

R L Fine Chemicals manufactures about 80 ‘active pharma ingredients’ (APIs); it is the only manufacturer for about 8 of these APIs. Jain describes them as “low volume, high margin” products. Refex seized the opportunity when the promoters, in 2021, wished to sell out their 30 per cent stake. MAPE Advisory held 26 per cent and Cafe Coffee Day 44 per cent, of which 18 per cent was pledged with Ratnakar Bank. Refex bought the 18 per cent stake.  

In October 2023, Refex had R L Fine Chemicals borrow from Kotak Mahindra Bank’s NBFC, which was used to buy-back shares from MAPE Advisory and extinguish the shares. Refex ended up with 71 per cent stake in R L Fine Chemicals and is now in the process of buying out the rest, from CCD. In all, Refex would have spent ₹310 crore on acquiring R L Fine Chemicals. The company’s turnover this year is projected to be ₹420 crore, EBIDTA ₹120 crore and net profit ₹66 crore. 

Asked if Refex Life Sciences would come out with an IPO, Jain said that would happen after about two years.  

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