Private equity firm TA Associates said on Tuesday it has invested in Mumbai-based Ideal Cures Pvt. Ltd, its second bet on a pharmaceuticals company within three months.
Ideal Cures makes ready-to-use coating products and excipients for tablets and capsules for the pharmaceutical and allied industries, the PE firm said in a statement. It didn’t disclose financial details.
Explaining its rationale for the investment, the PE firm said the industry trend is to outsource production of such coatings as pharmaceutical companies seek solutions that reduce processing time and their carbon footprint.
“Ideal Cures has emerged as a provider of high-quality products and services in the tablet coating space, with a vast and diversified customer base globally,” said Dhiraj Poddar, country head of India at TA Associates Advisory Pvt. Ltd, who will join the board of the pharmaceutical company.
Kamlesh Oza, global business development head at Ideal Cures, said the investment will help the company use TA Associates’ networking and corporate development capabilities to accelerate growth in South Asia and other regions.
Ideal Cures was founded by Suresh Pareek in 1999. It has three manufacturing plants, in Vasai, Jammu and Khambat, with another one coming up in Sikkim, it said. The firm has two R&D facilities, in Mumbai and Vasai.
K Law served as legal counsel to Ideal Cures and DSK Legal served as legal counsel to TA Associates.
The deal comes after TA Associates in December invested $25.5 million in drug ingredients company Shilpa Medicare Ltd.
Earlier this month, TA Associates invested in small finance bank Fincare Business Services. The PE firm also owns a stake in Dr Lal Pathlabs Ltd, which went public in December 2015.
Last year, it had invested $140 million (Rs 937 crore) in TCNS Clothing Co Pvt. Ltd, which owns the ‘W’ brand of clothing for women, to buy out shares from existing shareholders including Matrix Partners India.
TA Associates also has investments in data analytics provider Fractal Analytics, broadband services provider Atria Convergence Technologies, mobile handset maker Micromax, financial technology services firm Bill Desk and Tega Industries, which makes products for the mining industry.
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