Bangalore-based Beloorbayir Biotech Ltd, (BBTL) has raised Rs 75 crore ($12.4 million) from India Agri Business Fund, the food and agri-focused private equity fund of Rabo Equity Advisors Pvt Ltd.
BBTL, founded by BG Bairy in 1981, is a manufacturer of food and dietary supplements, botanical extracts and nutraceuticals in bulk and finished formulations. The quantum of stake picked by Rabo is not disclosed, but typically the PE firm acquires stake in the range of 20 per cent in its portfolio companies.
The investment will help the company further expand its manufacturing and infrastructure capabilities and strengthen its marketing activities in global regulated markets.
Rajesh Srivastava, chairman and managing director, Rabo Equity Advisors, will join the board of Beloorbayir Biotech.
Srivastava said that BBTL has built a strong reputation globally for offering nutraceutical-based solutions to both industry and the consumer alike and that nutraceuticals is an important focus area for the PE firm.
According to Gujarat-based marketing consulting firm IKON Marketing Consultants, the Indian nutraceuticals market is growing at a CAGR of 18.46 per cent and is currently worth Rs 19,500 crore.
Beloorbayir Biotech posted sales of over Rs 85 crore for fiscal 2013-14. The company gets a major chunk of its revenue from markets such as the US, Europe, Japan, Asia Pacific and the SAARC region. It has manufacturing facilities located in and around Bengaluru.
This is the first deal for Rabo Equity this year. In July last year, the PE firm invested in Bangalore based agri-warehousing company National Collateral Management Services Ltd.
Rabo Equity has invested in 10 companies from the first fund, including Daawat Foods Pvt Ltd, Sri Biotech Laboratories India Pvt Ltd, National Collateral Management Services Ltd, Hyderabad-based seeds firm Super Agri Seeds Pvt Ltd and Ahmednagar-based Prabhat Dairy Pvt Ltd, as well as Avantha Group’s processed foods firm Global Green, among others.
Rabo Equity’s first fund, launched in November 2008, had Rabobank as its fund sponsor and its other investors included the World Bank’s private investment arm International Finance Corporation, German development financial institution DEG, Dutch development finance institution FMO, CDC (a UK-based development institution funded by the British government) and private institutional investors such as Capvent.
(Edited by Joby Puthuparampil Johnson)