The Hyderabad-based Gland Pharma will be acquired by the Shanghai Fosun Pharmaceutical Group for $1.3 billion, in what could be India's largest acquisition by a foreign firm in 2016.

A supplier of variety of injectabes, Gland, is largely (96 percent) owned by its founders Ravi Penmetsa and family along with U.S. based private equity firm KKR. Fosun, sources told Reuters, will acquire complete stake from both.

The Chinese firm is expected to benefit from Gland's technology used in the formulation of the hard to manufacture injectables, which the firm has pioneered over the years. Gland's acquisition in turn will add more shine to India's numerous low cost pharma manufacturers, said the news agency.

It cited an ICRA report that said the opportunity in the U.S. was abound as nearly $16 billion worth patents on injectables will expire by 2019, while the market for these medicines were slated to grow 10 percent annually over five years there. The total market for injectables is estimated to be $144 billion with manufacturers benefitting the largest.

Anticipating the growing need for this medicine, the pharma giant Pfizer acquired U.S. based injectable manufacturer Hospira last year, and in 2013, Mylan NV bought India-based Strides Shasun's injectable business.

Gland Pharma owns seven manufacturing facilities in India that manufacture the medicine which are primarily administered through vials, syringes, bugs and pumps said the news agency.

The acquisition will also help Fosun to spread its manufacturing network in the country. This would also be China's biggest acquisition in the pharmaceutical space, said ET.

In June, the Indian government relaxed its foreign direct investment rule in the pharmaceutical space to allow 75 percent investment under the automatic route. The Fosun Gland deal, therefore, will need the approval of government.