Torrent Pharmaceuticals Ltd has entered into a definite agreement with Elder Pharmaceuticals Ltd to acquire the later pharmaceuticals giant's local drug operations on a slump sale basis for Rs 2,000 crore.

Elder's India formulations business consists of a portfolio of thirty brands, including segments like women's healthcare, pain management, wound care as well as nutraceuticals therapeutic. Torrent termed the acquisition as a "strategic fit" and said it would provide strength to its core prescription-based business.

Sudhir Mehta, chairman of Torrent Group, said, "This acquisition strengthens our position in the Women Healthcare, Pain management and Vitamins/Nutrition segments by enhancing and accelerating market access."

Mr. Mehta added that the deal would likely enable cost and revenue synergies in the company's local drug formulations business. He added that the company would fund the deal through a mix of internal accruals and bank borrowings.

The list of Elder brands which will be transferred to Torrent includes Shelcal, Chymoral and Ontac. It may be noted here that Elder's Indian drug business operations include its sales infrastructure in Nepal.

Elder will utilize proceeds from the deal to cut down its huge debt pile. The two companies expect the deal to complete by the first half of 2014.