Actis to buy 10% in Paras for Rs 100 cr
Private equity major Actis is close to picking up 10% in the Ahmedabad-based Paras Pharmaceuticals, the company that owns well known brands such as Moov, D’cold, and Krack.
By Javed Sayed and Vinod Mahanta, TNN |
NEW DELHI: Private equity major Actis is close to picking up 10% in the Ahmedabad-based Paras Pharmaceuticals, the company that owns well known brands such as Moov, D’cold, and Krack. It is believed that Actis is buying the stake for around Rs 90-100 crore from one of the members of the Patel family, which owns the company. When contacted by ET, Actis declined to comment. Telephone calls and e-mails to Paras Pharmaceuticals chairman Girish Patel failed to elicit a response. Nevertheless, highly placed sources in investment banking and private equity circles confirmed that the stake acquisition was in the offing.
The Rs 350-crore Paras Pharmaceuticals began as a pharmaceutical OTC (over the counter) company. Over the years, it has established its presence in the personal care and hygiene segment. It has successfully launched several new brands and has the image of being one of the few FMCG companies that has launched regular winners. In addition to Moov and D’cold that are pharma OTC brands, the personal care brands in its portfolio include BoroSoft, ItchGuard, DermiCool, and Livon. Some of these brands have been eyed by FMCG companies, although industry sources say not all of them are attractive.
The Patel family consists of three brothers — Girish, Darshan, and Devendra. While the buzz is that Actis is buying its equity from one of the brothers, this could not be confirmed. In the past, there have been rumours of a rift between the three brothers, which they have always denied.
If this deal goes through, it will be Actis’ second investment in a Paras group venture in rapid succession. Last month, the private equity fund picked up a 41% stake in Ahmedabad's Sterling Hospital, a 290-bed hospital. Actis has been very aggressive on the deal front lately, and is learnt to have closed many transactions since the recent capital market correction. Some of the deals it is believed to have stitched up in the last month include investments in Nilgiris Dairy Farm, Add Life Medical Institute and Phoenix Lamps.
It remains to be seen what Actis’ next step in Paras Pharmaceuticals will be once it buys a 10% stake in the company.
An FMCG industry source said it is unclear what value creation Actis could do with just 10% equity.
The Rs 350-crore Paras Pharmaceuticals began as a pharmaceutical OTC (over the counter) company. Over the years, it has established its presence in the personal care and hygiene segment. It has successfully launched several new brands and has the image of being one of the few FMCG companies that has launched regular winners. In addition to Moov and D’cold that are pharma OTC brands, the personal care brands in its portfolio include BoroSoft, ItchGuard, DermiCool, and Livon. Some of these brands have been eyed by FMCG companies, although industry sources say not all of them are attractive.
The Patel family consists of three brothers — Girish, Darshan, and Devendra. While the buzz is that Actis is buying its equity from one of the brothers, this could not be confirmed. In the past, there have been rumours of a rift between the three brothers, which they have always denied.
If this deal goes through, it will be Actis’ second investment in a Paras group venture in rapid succession. Last month, the private equity fund picked up a 41% stake in Ahmedabad's Sterling Hospital, a 290-bed hospital. Actis has been very aggressive on the deal front lately, and is learnt to have closed many transactions since the recent capital market correction. Some of the deals it is believed to have stitched up in the last month include investments in Nilgiris Dairy Farm, Add Life Medical Institute and Phoenix Lamps.
It remains to be seen what Actis’ next step in Paras Pharmaceuticals will be once it buys a 10% stake in the company.
An FMCG industry source said it is unclear what value creation Actis could do with just 10% equity.
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