MUMBAI | AHMEDABAD: Malaysian private equity firm Creador Capital is close to investing Rs 118 crore for a minority stake in Ahmedabad-based drug maker Corona Remedies. Creador, which has already invested in about eight other companies in India, would be investing in Corona through a Mauritius subsidiary.
Creador confirmed the deal to ET but refused to disclose stake it is buying in the company. According to people close to the development, Creador will be picking up about 20% stake in Corona, valuing the company at around Rs 500 crore.
Corona is one of the fastest growing companies in its category and has been growing at around 40% year-on-year, according to company executives. It is mainly into manufacturing anti-allergic and cardio-diabetes products, and operates across multiple therapeutic areas and dosage formats.
“We want to grow exponentially and want to grow organically as well as in an inorganic way,” Nirav Mehta, director at Corona Remedies, told ET. The company was started in 2004 by Mehta along with his father Kirtibhai and brother Ankur.
Corona is also aggressively exploring mergers and acquisitions with smaller pharma companies, Mehta said. It is already in talks with two smaller pharma companies for acquisition. Private equity firms have been bullish on the Indian pharma as it remains one of the fastest growing sectors along with financial services.
While generic has been the main strength of Indian pharma players, increasingly, companies have been investing and expanding in research & development of branded drugs. Industry experts say enhanced medical infrastructure and rising affordability in the country is also contributing to higher spend on overall healthcare.
