The producer strain of the new antibiotic, lipiarmycin, is described. The colony morphology, the presence of globose sporangia bearing motile spores, the absence of aerial mycelium and the presence of meso-DAP in cell wall, ascribe this strain to the genus Actinoplanes. The pigmentation and morphological characteristics together with the cultural and physiological features distinguish this strain from all the described Actinoplanes species. It is considered to be a new species for which the name Actinoplanes deccanensis nov. sp. is proposed. Lipiarmycin is produced in an organic complex medium containg NaCl. Production occurs at the end of trophophase and continues, though at decreasing rate, during idiophase.