Mumbai-based drugmaker Cipla Ltd is roping in Fidelity Growth Partners India, a PE unit of asset management giant Fidelity, as an investor in its consumer healthcare business, it said on Tuesday.
FIL Capital Investments Mauritius II Ltd, the investment arm of Fidelity Growth Partners India, will invest an undisclosed amount in a proposed firm which would house the consumer healthcare business, Cipla said.
An email sent to spokesperson of Fidelity Growth Partners India did not immediately elicit a response.
Earlier this month, Cipla had said it will move its consumer healthcare business into a wholly-owned subsidiary which is yet to be incorporated on a going-concern basis through a slump sale for Rs 10.5 crore.
It had also said the divestment would help the drugmaker participate in the attractive and growing over-the-counter market, sharpen its focus on the segment and boost sales.
For the year ended March 31, 2015, the consumer healthcare division of the company registered sales of Rs 34.88 crore or approximately 0.3 per cent of consolidate total income during the fiscal.
Besides, the OTC division’s net worth was Rs. 6.45 crore, about 0.06 per cent of the net worth of Cipla, as on March 31, 2015.
Cipla had virtually exited the OTC (over-the-counter) drugs market by selling its emergency contraceptive brand i-pill to Piramal Healthcare Ltd for Rs 95 crore. i-pill was launched in 2007 and was the largest selling emergency contraceptive in the domestic market for the women.
Fidelity Growth Partners India is an active growth stage investor with positions in over two dozen companies, according to VCCEdge, the data research platform of VCCircle.
Year 2015 is turning out to be one of its busiest ever with seven deals in as many months. Its other recent investments include BankBazaar, Medwell Ventures, Haygot Education, Icertis, Green Light Planet and MineralTree.