Private equity investor Ascent Capital Advisors India has bought a minority stake in Alivira Animal Health through an investment of ₹120 crore, Manish Gupta, Managing Director, Alivira, told Business Line .

Alivira is a joint venture between Chennai-based Shasun Pharmaceuticals and SeQuent Scientific to manufacture and sell veterinary products.

Shasun, which holds 27 per cent in the venture, has transferred its Visakhapatnam plant to Alivira, while SeQuent, holding the rest, has moved its veterinary products business to the company, said Gupta. Production at the factory is set to begin soon.

The exact stake picked up by Ascent can be ascertained after 18-24 months, when it converts its investment into equity.

“It is an instrument which will get converted into equity shares of Alivira based on future performance,” Gupta said.

US, UK — target destinations

The global veterinary market is a $25-billion market growing at an annual growth rate of 6 per cent. Gupta says regulated markets such as the US and the UK will be target destinations of export for the company.

S Abhaya Kumar, Chairman and Managing Director, says few Indian players operate in this space, giving Alivira the early mover advantage. Shasun had kept its ₹129-crore Visakhapatnam factory idle for months in preparation for this joint venture.

Ascent Capital is an India-focused PE firm currently managing $600 million across three funds. Its previous healthcare bet was ₹100 crore in Mysore-based medical device maker Skanray Technologies.

On Thursday, Shasun’s scrip increased 3.74 per cent to ₹87.75 on the BSE while SeQuent’s shares rose 1.76 per cent to ₹240.

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