Reliance Industries has now stepped into a new sector i.e., the Biotechnology Sector, after few months of entering into the Clean Energy Green Energy Business which was announced in the Annual General Meeting of 2021. Let’s discuss more this entry of Reliance Industries into this new business segment in this article as we move ahead.
The Stock Price of Reliance Industries went up by around 3.83 % to hit a record high of ₹ 2,479.85 after the company post market hours on Friday 3rd September 2021 when the company was informed about the acquisition of an 80.3% stake in Strand Life Sciences for cash consideration of Rs. 393 Cr. Here are the other details about the deal and the acquired company.
New Acquisition by Reliance Industries:
- Reliance Industries (RIL) through its wholly-owned subsidiary Reliance Strategic Business Ventures Limited (RSBVL) has acquired Strand Life Sciences Private Limited, which is involved in Biotechnology Research and other related activities.
- RSBVL has acquired a controlling stake of 80.3% in Strand Life Sciences.
- This deal has taken place via cash consideration of Rs. 393 Cr. for 2.28 Cr. shares of Rs. 10 each of Strand Life Sciences.
- RSBVL will further invest Rs. 160 Cr. by March 2023 and will gain the rest of the stakes.
- Strand Lifescience is having a very unique tagline which goes like, “Every Patient is Unique”, “Every Datapoint is Precious”, and “Every Decision is Crucial.”
- Thus, RSVBL’s investment in Strand is a part of RIL’s digital health initiatives. To foster affordable access to world-class technology & an innovation-led healthcare ecosystem in India.
Strand Lifesciences: Company Overview:
- Strand Lifesciences is a Banglaore-based Bioinformatics Company working in the Biotechnology Industry.
- The Company was incorporated on October 6, 2000, by Entrepreneurs from the Indian Institute of Sciences (IISc, Bangalore).
- Strand is a pioneer of genomic testing in India with bioinformatics software and clinical research solutions to healthcare providers.
- Key Specialities of Strand Life Sciences:
- Research IT
- Computational Chemistry
- Life Sciences
- Genomics Software
- Drug Discovery
- Next-Generation Sequencing
- Healthcare, Genetics & Genomic Testing
- Liquid Biopsy
- Cancer Diagnostics
- Rare Disease Testing
- The Company is having a total customer base of more than 2,000 customers all over the world which includes:
- World’s Premier Research Institutes
- Pharma & Biotech Companies
- Medical Devices Manufacturers
- Regulatory Bodies
- Hospitals and Doctors
- Strand Life Sciences is having a presence all over the world and is trusted by World’s Best Brands. Some major Brands names can be seen in the image attached below:
Strand Life Sciences: Accreditations:
- Strand has 3 CAP accredited certified central labs (The largest number for any lab provider in India):
- Strand Center for Genomics
- Strand Center Personalized Medicine
- Strand’s laboratory in HCG’s Center of Excellence in Bangalore
- Strand’s central labs are also certified with NABL (National Accreditation Board for Testing and Calibration Laboratories)
Strand Life Sciences: Financial Overview:
- The Company spent a lot of amount in Research and hence the company recorded loss of Rs. 21.66 Cr. and 25.04 Cr. in FY19 and FY20 respectively.
- Finally, the company turned profitable in FY21 to Rs. 8.48 Cr.
This new acquisition by Reliance Industries of Strand Life Sciences will mark the step of the company to enter into the healthcare sector and to be specific digital healthcare sector. The Whole deal will be completed by March 2023 and it will be interesting to see how Reliance will utilize this business in the future.