The Hindu Business Line : Ocimum Bio open to more acquisitions

Major focus
The target is to acquire companies in Europe or the US
The company is expanding its domestic sales team
It is contemplating another round of fund raising

Hyderabad , Dec. 4

Ocimum Biosolutions, which raised $6.5 million, is planning more acquisitions and firming up plans to improve its global presence, through a brand building exercise.

The Hyderabad-based company recently divested minority stake to the International Finance Corporation (IFC), of the World Bank. Accordingly, the IFC will invest $6.5 million of equity, for a minority stake, and debt in the company.

The company has targeted to emerge as a $10-million firm in the next two years. It is also planning to have its own larger campus and infrastructure, according to Ms Anuradha Acharya, Founder & CEO of Ocimum Biosolutions.

The company, which acquired the micro-array division of MWG Biotech in 2005 and, more recently, the Oligo division of the Netherlands-based Isogen Life Sciences, is looking at 2-3 more acquisitions in the short term, Ms Acharya told Business Line.

The idea is to scale up capability in the lucrative Oligo space, micro-array and laboratory information systems as well as spread in customer base and geographical reach. The target is to acquire companies in Europe or the US, she said.

Sales teams

Simultaneously, the company is expanding its domestic sales team and consolidating its strength. At present Ocimum has a sales force of 30 and the rest of the total 160 are into R&D and administration. The facilities are located within the city and cannot accommodate much expansion, she said.

While IFC investment is Ocimum's first round of fund raising from private equity investors, it is contemplating another round of fund raising in the next 18-24 months. "We are exploring funding options from the Technology Development Board, the Department of Biotechnology and the Department of Science and Technology," Ms Acharya said.

Ocimum Biosolutions is a life sciences R&D enabling company with three main focus areas, BioIT, micro-arrays and contract research services. Its US operations focus on custom contract research services in the molecular biology area while the Indian operations provide BioIT services and leverage on India's low-cost advantage in IT space.

Though, the company has a global presence, it is still now well known among a large customer base. Therefore, increasing brand awareness among the potential clients will be major focus, she added.

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