Proceeds from the transaction will be utilized for debt reduction.
This sale will also help Strides to reduce annual costs by Rs 75 crore, of which Rs 18 crore will be reduction in operating expenses and Rs 57 crore in depreciation and operating lease expenses.
Strides said the Transaction would be EPS (earnings per share) accretive with no impact on revenues
The Singapore manufacturing site was mothballed last year as part of the manufacturing network optimization and cost reduction programs announced as part of FY23 reset strategy.
Strides said efforts were focused on integrating the US and the products that were supplied for US government procurement have been transferred to the Chestnut Ridge, US manufacturing site.”This transaction is the culmination of the manufacturing network optimization efforts as we continue to focus on driving profitability and operational efficiency,” the company said in a release.The transaction is expected to close in Q3FY24 on receipt of necessary approvals.
