ICICI venture close to buying 15% in Porus Labs

ICICI Venture Funds Management Company, one of India’s largest local private equity funds, is close to buying 15% stake in the Hyderabad-based Porus Labs, a contract manufacturer for drugs and chemicals used in agriculture, two persons with direct knowledge of the deal said.

The deal, set to be signed in a few weeks, has valued the Porus Labs at about Rs 1,000 crore. The contract manufacturer will use the money to expand its business in drugs, agrichemicals and polymers. Porus did not respond to an emailed questionnaire, while ICICI venture was unavailable for comment.

Porus, a contract manufacturer for anti migrane medicines, counts some of India’s largest drug makers such as Sun Pharma, Lupin and Teva, among its customers. The company's website said it was the leader in efficient process of 'triptans,' that comes under the anti-migraine category of drugs. ICICI Venture’s investment comes when Indian contract manufacturing companies finding business shrinking with competition from Chinese rivals.