SIDBI invests in two Indian companies

The Small Industries Development Bank of India's private equity arm has backed a pharmaceutical company and an industrial adhesive-manufacturer as it looks to fully invest its second fund before 2009.

SIDBI Venture Capital has made investments of $7.5 million (€4.8 million) each into Mumbai-based pharmaceuticals manufacturer Centaur Pharmaceuticals and Chennai-based Anabond, a manufacturer of industrial adhesives.

Vipul Mankad, president of SIDBI Venture Capital, told PEO that the firm picked up significant minority interests in both the companies, but declined to disclose the stakes acquired.

Centaur Pharmaceuticals manufactures a variety of drugs associated with respiratory, gastrointestinal, diabetics, anti-infective cardiovascular and herbal segments. The company has three manufacturing plants, including a recently opened one which will focus solely on exports. The investment will be used for the new plant.

Anabond engages in the manufacture of industrial adhesives and sealants, and Mankad told PEO that the investment will be used by the company for a new tantalum metal manufacturing plant that it is setting up in Chennai.

The two investments were made out of the SIDBI SME Growth Fund which closed on 5 billion Indian rupees ($125 million; €79 billion) in late 2004. The firm has made 21 investments from the fund and deployed about 3.8 billion Indian rupees, Mankad said.

The SIDBI SME Growth Fund invests in diverse sectors and has so far committed to the clean tech, pharmaceuticals, logistics, manufacturing, textile, healthcare and service sectors. It focuses on early-stage and growth investments and commits capital in the range of 50-300 million Indian rupees per deal.

Mankad said the fund is expected to be fully invested by the end of the year.