PE major Actis plans to exit CICO Tech

NEW DELHI: Private equity (PE) major Actis is planning to exit CICO Technologies, one of its oldest investments in the country. CICO is, currently, in talks with several investors, including the US-based WR Grace & Co, for a deal which may involve sale of company assets.

When contacted by ET, Actis confirmed that they are in discussion for exiting CICO but have not yet reached a final decision. Adds a CICO spokesperson: “As a venture capitalist Actis has stayed in the company for seven years while the norm for venture capitalist to exit is three-to-five years.”

“We as a company are looking at the exit of Actis. At this stage, we have many offers, Grace being only one of them. We have not evaluated the offers in detail as yet,” said a CICO spokesperson.

Actis had invested in CICO Technologies, a construction chemicals manufacturing company, in 2000 when the company was incorporated. At that time, PE major had taken a 30% stake in the company and subsequently hiked it to 40%.

The company has been promoted by Amit Gupta. Sources say Grace is keen to buy the assets of CICO Technologies for Rs 50 crore. CICO spokesperson did not comment on the issue. The company has ruled out that it is on the block.

While the price at which Actis invested in CICO is not known, sources say it is unlikely that the PE player will make any significant profit from selling its stake.

Actis is a major PE investor in emerging markets like Africa, China, Malaysia and South Asia and has $3.4-billion funds under management. It has investments in Dalmia Cements, Glenmark Pharmaceuticals, Jyothi Laboratories, Paras Pharmaceuticals, UTI Bank and Nilgiri’s.

CICO technologies has a projected turnover of Rs 60 crore for the financial year ending 2007-08, and in the last three years it has grown at over 25% per annum.

The company specialises in construction chemicals and has a presence in few international markets like Sri Lanka, Nepal, Bangladesh and Maldives. CICO is also forging a joint venture with Qatar-based Aljabor Trading for a manufacturing unit in Doha.