AIF seals $750m India exit

The firm has sold its stake in Mumbai-based pharmaceutical firm Famy Care

Asian private equity firm AIF Capital has sold its stake in Famy Care, an oral contraceptive pill producer based in Mumbai, for $750 million, according to a statement. Return information on the investment was not disclosed.

The firm has sold the business to global pharmaceutical player Mylan Laboratories, which owns about 1,300 generic pharmaceuticals and several brand medications.

Mylan has agreed to pay $750 million to shareholders, plus additional contingent payments of up to $50 million.

Famy Care, headquartered in Mumbai, India, produces a range of women's health products, including oral and injectable contraceptives, intra-uterine devices, tubal rings and hormone-replacement therapy products.

It is the world's largest producer of generic oral contraceptive pills, with four high quality manufacturing facilities in India, two of which have been approved by the US Food and Drug Administration (FDA) and the European Union, according to the firm.

India’s healthcare sector is increasingly popular with private equity firms capitalising on the country’s underserved healthcare needs, with firms such as Kohlberg Kravis Roberts, OrbiMed Partners and Advent International buying related assets in the country.

The Indian private equity market has been buoyant across the board too, with the value of private equity dealflow in India reaching $10.9 billion last year, a 47 percent increase year-on-year and second only to the record $14.5 billion invested by the industry in 2007.

Figures also show that investments are becoming larger, with the volume of investment roughly on par with last year at 436 deals, despite their combined value climbing by almost 50 percent.