Zota Health Care Limited, a prominent player in the pharmaceutical industry, has recently made strategic moves to bolster its presence in the generic pharmacy sector. On March 11, 2025, the company announced the acquisition of 133,332 equity shares of its wholly-owned subsidiary, Davaindia Health Mart Limited (DIHML), through a rights issue. This investment, amounting to ₹55.39 crore, underscores Zota’s commitment to expanding its footprint in the generic pharmacy market.
Understanding the Acquisition
The acquisition involves Zota Health Care Limited subscribing to 133,332 equity shares of DIHML at ₹4,155 per share, which includes a premium of ₹4,145 per share. This strategic investment aims to meet the working capital requirements of DIHML and strengthen its operations. Despite this additional investment, DIHML continues to operate as a wholly-owned subsidiary of Zota Health Care Limited.
Established on January 1, 2020, DIHML operates under the Company Owned Company Operated (COCO) model of Davaindia Generic Pharmacy. The subsidiary has rapidly expanded its presence, boasting over 780 stores across 15+ states in India. DIHML offers an extensive range of over 2,000 Stock Keeping Units (SKUs), including medicines, ayurvedic products, cosmetics, nutraceuticals, and over-the-counter (OTC) products.
DIHML has demonstrated impressive growth over the past three financial years:
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FY 2021-22: ₹1.60 crore
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FY 2022-23: ₹14.61 crore
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FY 2023-24: ₹44.77 crore
This consistent upward trajectory reflects the company’s successful expansion strategy and increasing market acceptance.
In a bid to enhance customer accessibility and streamline the purchasing process, Zota Health Care Limited launched the “davaindia” B2C online portal and mobile app on March 10, 2025. This e-commerce platform allows consumers to order from a wide range of over 2,000 SKUs, encompassing medicines, cosmetics, nutraceuticals, ayurvedic, and OTC products. The platform operates on a hyperlocal model, with COCO retail outlets serving as fulfillment centers to ensure swift and efficient order processing and delivery. Initially launched in select cities with a 60-minute delivery promise, there are plans to expand this service pan-India in a phased manner.
