News Column

Carlyle May Invest In Bharat Serums

June 15, 2014

Carlyle Group is planning to acquire around 25-30% stake in Mumbai-based @BharatSerums Limited for INR 5 to 6 Bn from existing investors. The planned buy may see Kotak Private Equity Group and @OrbiMed_AdvisorsPrivate Limited exiting the venture.

However it is uncertain if promoters would be diluting any stake.

Kotak PE had invested Bharat Serums in 2009 picking up around 15% stake and in 2010 OrbiMed Advisors had invested an undisclosed amount for 8-10% stake. These investments brought onboard Nitin Deshmukh, CEO, Private Equity, at Kotak Investment Advisors, and Sunny Sharma, senior managing director on the Asia team of OrbiMed Advisors.

Bharat Serums - promoted by the Daftary Group is engaged in research, manufacturing and marketing of life saving drugs with a portfolio of 25 brands in plasma derivatives, monoclonals, fertility hormones and cardiovascular drugs.

BSVL has two manufacturing units, located at Thane and Ambernath in Maharashtra, with a total installed capacity of 27 mn vials / ampoules.

The 900 Men strong BSVL is a domestic player with 75% of net sales in FY13 (83% in FY12) from domestic markets while the balance 25% revenue was through export sales to Russia, LatAm and African countries. It had revenues of INR 3,900 Mn for the FY13.

The deal if consummates would be third in the sector after Medanta Medicity and @Claris_Lifesciences. In December the, the PE firm with an investment and commitment of c.$1.1 Bn in India had picked up 27% stake in Gurgaon-based multi-specialty Medanta Medicity Hospital for INr 9,600 Mn, valuing the company at INR 35,500 Mn. In 2006 the firm had invest $20 Mn in in Claris Lifesciences Limited.

Carlyle's other Indian portfolio consists of Allsec Technologies, Edelweiss, Elitecore Technologies, IIFL, Repco Home.

Last year the PE major had exited its investment in Tirumala Milk Products in which the PE fund held 20% stake to French major Lactalis.

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Source: DealCurry (India)

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