Actis Ups Stake In Paras To 60%; To Bring In Ex-Dabur Exec As CEO
Actis, a private equity fund that takes an active role in the managing of an investee company, has upped its stake in Ahmedabad-based Paras Pharmaceuticals from a minority 23 percent to almost 60 per cent. Following the change in control, Actis is believed to have roped in an ex-honcho of Dabur as the new CEO of the company, reports Business Standard.
The new CEO, with previous stints at Dabur and ITC, is expected to improve Paras performance and consolidate its position in the FMCG industry which is facing challenges from multinationals like Hindustan Unilever (HUL), GlaxoSmithKline (GSK) and Johnson & Johnson (J&J).
Known for its leading over-the-counter brands like Borosoft, D Cold, Dermicool, ItchGuard, Krack, Actis’ move to bring in a seasoned FMCG executive is its first major attempt at putting Paras back as a serious contender in the Indian FMCG market.
Paras Pharma was founded and managed by the Ahmedabad-based Patel family. Actis initially bought 23 per cent in Paras in 2006 for $43 million from a handful of investors including the second Patel brother Darshan. Actis has around 60 per cent in Paras now, Girish Patel and family hold 30 per cent and the remaining 10 per cent is held by other investors including Sequoia Capital.
Actis has a record of taking controlling interest in companies; it also makes management buyouts. Some of the companies it has invested included AVTEC Limited, an Indian automotive component company, Daksh, provider of remote customer care and business process outsourcing (BPO) services, Dalmia Cements, (cement and sugar), GlenMark Pharmaceuticals (a mid-sized pharmaceuticals company), Jyothy Laboratories (manufacturer and distributor of household products), National Stock Exchange of India, Sterling Add Life Medical Institute (a leading regional healthcare company in Gujarat), TEMA (heat exchange manufacture), UTI Bank, Veeda ( an Indian clinical research organization).
Its buyout deals includes Punjab Tractors, Phoenix lamps (marketers of light products), Nilgiri Group (food retail) and Punjab Motors.
