Private Equity News & Analysis

AIF in $40m Indian pharma deal

The Hong Kong-based private equity firm’s investment in Famy Care will assist the company’s expansion into developed markets.

-
Asia-focused private equity firm AIF Capital has invested INR1.75 billion (€29.2 million; $39.5 million) in Famy Care, an Indian pharmaceutical company, for an undisclosed minority stake. 
Mumbai-based Famy Care is one of the world’s largest manufacturers of female oral contraceptives and specialises in the women’s healthcare market, the firm said in a statement. It sells its products in emerging markets through its own distribution channel and institutional contracts with global family care organisations. Famy Care has an R&D facility in Mumbai, two manufacturing facilities in Gujarat and one each in Daman and Maharashtra. 
The company now intends to launch its products in the US and Europe. In the US, it has entered into a strategic alliance with Mylan, the world’s third largest generics company as part of its plan to launch oral contraceptives in the country. The investment will be used to expand the business into developed markets, Peter Amour, chief executive officer of AIF Capital, said in a statement. 
“This investment reflects our belief in the Indian pharmaceutical industry which has a proven track record of producing high quality drugs through low cost business models enabling it to capture larger market shares globally,” he added. 
In June 2008, AIF had invested $31 million for an undisclosed stake in BioPlus Life Sceinces, a manufacturer of healthcare supplements in India. 
The investment in Famy Care was made from AIF Capital Asia III, a $435 million private equity fund that invests in expansion, buyout and recapitalisation of companies in China, India and Southeast Asia, and closed in January 2007. Its last investment was the acquisition of an 11.4 percent stake for $45 million in Singapore-listed crane distribution and leasing business Tat Hong Holdings, in August 2009. 
Since inception in 1994, AIF Capital has raised more than $1.7 billion and has invested in 33 companies across nine countries in the region across sectors such as supply chain management, financial services, manufacturing, specialty steels and engineering services, power generation, telecom and transportation. 
The firm has a team of 23 investment professionals across offices in Hong Kong, China and India.