Private equity backed Nuziveedu Seeds Ltd (NSL) has acquired 51% stake in two seed manufacturing firms. Hyderabad-based NSL has acquired stake in two city based firms, Pravardhan Seeds and Yaaganti Seeds, for a total sum of Rs 35 crore.
Private equity major Blackstone invested upto $80 million or Rs 400 crore for less than 25% stake in Nuziveedu in December last year. Though the funds will come by February or March this year, the acquisitions by NSL comes soon after announcement of the private equity deal.
Nuziveedu currently has a 35% share in the Rs 1,200 crore BT cottonseed market in the country, and plans to expand it to 55% in the next five years. The firm currently has revenues of Rs 500 crore, of which 80% are earned through selling hybrid cotton seeds. Nuziveedu Seeds has around 1,000 employees. NSL Group is a diversified group and also has a presence in textiles, sugar, wind energy and infrastructure.
Acquisitions by private equity backed companies are expected to rise this year. The valuations across the industries have become attractive, and PE-backed firms may have the cash to acquire the targets.