AIF Capital, a Hong Kong-based private equity fund, has invested $40 million (about Rs 175 crore) in Famy Care Ltd, a Mumbai-based company engaged in female health care products. The investment is made through AIF Capital Asia III, LP, said a company statement.
The fund, however, did not disclose the quantum of stake it had picked up in the company. A recent report in Economic Times said, Baring Private Equity Partners India was in the race to pick up 15% stake in Famy Care for a similar amount.
Famy Care manufactures a wide range of products in reproductive healthcare and oral contraceptive segment including emergency contraceptive pills, intra uterine devices, and cancer detection kit. It sells the products through its own distribution channels, and also has partnership with ministries of health & family welfare and several other social organisations to supply its products globally.
Famy Care will invest the funds in expanding its operations in developed market. It has also been upgrading its products to meet the regulatory requirements in the US and Europe, according to the information given on the company website. It believes the move will help it to become a dominant player in the hormonal and reproductive health care segment in the world. Recently, the company has entered into a strategic alliance with Mylan Inc in the US to tap the market in the region.
“Having served the unregulated markets for the last twenty years, we are now at an inflexion point as we have built the necessary technical and manufacturing capabilities along with strong marketing relationships required to make a successful entry into developed markets. With AIF Capital on board, we look forward to spearhead our operation in realising the same,” J P Taparia, founder chairman, Famy Care, said in the statement.
AIF Capital invests in supply chain management, financial services, manufacturing, specialty steels and engineering services, power generation, telecom and transportation. The fund got commitments from corporate and government pension and investment funds and several other financial institutions in North America, Australia, Europe, Asia and the Middle East. International Finance Corporation (IFC) and Asian Development Bank are two such investors in the fund.
“This investment reflects our belief in the Indian pharmaceutical industry which has a proven track record of producing high quality drugs through low cost business models enabling it to capture larger market shares globally,” Peter Amour, CEO, AIF Capital, said in the statement.
It currently has $1.7 billion in assets under management and has already invested in 33 companies across nine countries in Asia. Some of its earlier investments in India include Bharti Infratel, BioPlus Life Sciences and GPT Steel Industries Ltd.
In one such deal in oral contraceptive space in recent times, Piramal Healthcare Ltd, one of India’s largest pharmaceutical and healthcare company, acquired Cipla’s emergency contraceptive product (ECP) brand i-pill for Rs 95 crore last month.