Mankind Pharma and Baidyanath Ayurveda have reportedly submitted expressions of interest (EoIs) to acquire the entire government-owned Ayurveda entity, Indian Medicines Pharmaceutical Corporation (IMPCL), sources say.

Other potential bidders include a private equity fund and an asset reconstruction company, as per these sources.

Patanjali Ayurveda was initially expected to participate in the bidding, Economic Times reported.

Tuhin Kanta Pandey, secretary of the Department of investment and Public Asset Management, announced via Twitter that "Multiple EoIs received for the strategic disinvestment of IMPCL. The transaction will now move to the second stage."

In FY22, IMPCL reported a top-line revenue of ₹250 crore with a profit margin of approximately 25%. Established in the 1970s to promote Indian systems of medicine, IMPCL plays a significant role as a supplier to dispensaries and clinics under the Central Government Health Scheme (CGHS).

The government initiated a global invitation for EoI for the strategic disinvestment of 100% of its equity shareholding in IMPCL in September. The company falls under the administrative purview of the Ayush ministry, which encompasses Ayurveda, yoga, naturopathy, Unani, Siddha, and homeopathy.

Mankind Pharma and Baidyanath refrained from commenting when contacted about the matter.

The sale process follows a two-stage structure. In the first stage, EoIs are evaluated for eligibility based on net worth and corporate structure requirements outlined in government-provided information documents. Eligible EoIs proceed to the second stage, where due diligence is conducted, including site visits.

Following due diligence, shortlisted bidders are given a request for proposal (RFP) and required to undergo security clearance from the Ministry of Home Affairs. An independent valuation is conducted, and a reserve price is determined. Financial bids are submitted in sealed covers, and the highest bidder is declared the winner.

IMPCL, established in 1978, aims to manufacture and market genuine and efficacious Indian systems of medicine. It currently produces 656 classical Ayurvedic, 332 Unani, and 71 proprietary Ayurvedic medicines for a wide range of diseases.

IMPCL supplies Ayurvedic and Unani medicines to states under the National Ayush Mission (NAM) and to 6,000 Jan Aushadhi Kendras, government-owned medical stores that offer affordable prices.

Located in the Uttarakhand hills within the Jim Corbett National Park corridor, IMPCL's registered office and factory are situated in Mohan, Almora district, Uttarakhand.