KKR, based in New York, will buy stakes held by Evolvence and its India fund, subject to approval.
A Dubai-based alternative investment firm has agreed to sell its minority stake in India’s Gland Pharma for US$200 million.
Subject to regulatory approvals, the New York-based private equity giant KKR will buy the stakes held by Dubai’s Evolvence Capital and its India fund.
“Despite challenging conditions around most of the emerging markets, there remains a healthy appetite for good quality deals among foreign investors, especially in consumer and related sectors in India,” said Ajit Kumar, the managing director of Evolvence’s India fund.
Established in 1978, Gland Pharma specialises in pre-filled syringe technology.
In 2003, it became the first Indian company to secure United States Food and Drug Administration approval for its products.
Its revenue has grown to $150 million in the financial year that ended in March, from $26m between 2007 and 2008, according to India’s Economic Times newspaper.
Evolvence bought the stakes in Gland Pharma in 2008. Its India fund manages $250m worth of assets.
The Dubai firm’s strategy is to allocate 60 per cent of its funds on top-performing Indian private equity managers and 40 per cent on direct investments, which may include joint shareholdings with other firms.
“Gland Pharma is at an important juncture in its evolution where we have proven our sterile manufacturing capabilities, established ourselves as a high-quality manufacturer of complicated injectable products and achieved a track-record of strong financial performance,” said P V N Raju, Gland Pharma’s founder and chairman.
It will be using some of the new money injected by KKR for product development and increasing its manufacturing base.
“Our partnership with KKR will help us in our next phase of growth, as we look to materially expand our manufacturing capacities and invest more in our development work,” the company said.