Asia-focused PE firm PAG, along with consortium partners CX Partners and Samara Capital, have acquired a controlling stake in Chennai-based manufacturer of active pharmaceutical ingredients Anjan Drug for about $70-80 million.

The acquisition is part of PAG-led consortium’s strategy to create a platform for development and production of bulk drug ingredients.

Anjan, founded by C Kalaichelvan in 1990, is a supplier of active drug ingredients in the central nervous system therapy segment to markets including the US, Canada, Brazil and Europe.

Following the deal, the PAG-led consortium will set up a platform to tap into the consolidation opportunities in India’s high-growth API manufacturing industry.

‘Attractive opportunity’

“We see the Indian API market as a very attractive opportunity and well positioned for the future. Globally, this sector is currently growing at an estimated 8 per cent a year, with India, one of the three largest API producers in the world, growing even faster than that. By building a platform incorporating exceptional API producers like Anjan, we plan to develop a high quality, diversified portfolio of products with a solid client base and a broad range of technical expertise,” said Nikhil Srivastava, Managing Director and head of India private equity at PAG.

India plans

PAG is currently investing out of its $6-billion PAG Asia III buyout fund and has declared plans to invest up to $1 billion in India over the next few years.

CX Partners is an Indian private equity fund, while Samara Capital is a mid-market private equity firm investing in emerging Indian companies.

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