Mumbai, May 10: Malladi Drugs has acquired US-based Novus Fine Chemicals for Rs 100 crore.

The buyout has been funded through a strategic investment of Rs 100 crore by a consortium of private equity investors, including ICICI Venture, Sander Morris Harris group and IL&FS, Malladi said.

The company has entered into an agreement with these firms for infusion of funds through the issue of stock.

Malladi, which manufactures ephedrine and pseudoephedrine salts, said the acquisition of the US-based pseudoephedrine major Novus is a move towards consolidating its presence in the cough and cold segment.

?With the acquisition, Malladi will be in a position to provide a platform to innovators and start-up biotech companies, which will be fully integrated backward into India with a front end in the US,? managing director Prashant Malladi said.

The acquisition also strengthens Malladi's position in the phenylephedrine segment since Novus is the only company manufacturing it in the US. It will give the combine a 35 per cent market share in the active pharmaceuticals ingredients market.

The buyout offers Malladi a manufacturing presence in the US, which will enhance its client acceptance and raise the profile.

The Novus deal will increase the turnover of Malladi, a Chennai-based pharma company with operations in Ranipet, Cuddalore and Tirupati, to Rs 225 crore and bring with it economies of scale.

The details of how Rs 100 crore would be spent is not known. However, a pilot plant will be set up in India

Malladi is an unlisted company. Analysts say the company will probably come out with a public offering to allow its venture capital investors to unlock their investments in the company.