Forays into CDMO business and APIs. Their rationale is diversification of revenue streams and reducing dependency on traditional lines of business.
Will invest 285 Crore in setting up a subsidiary and identified Mr. N. Govindarajan as the CEO candidate for his rich experience in setting up CDMO businesses.
Gestation period is high in this line of business, especially CDMO. So, I hope they will not become overly aggressive.
Tube Investment seems like staying true to its name by incubating new lines of business. Given Chola group’s experience in creating successful franchises in different lines of businesses, I am personally not much worried that they will spread themselves too thin.
Disc: Invested since long. No recent transactions.