TPG Growth invests $30m in Indian pharma player
TPG Growth, the mid-market investment platform of TPG Capital, has invested $30 million in Indian pharmaceutical ingredient maker Solara Active Pharma.
Solara was formed in 2017 through the merger of the active pharmaceutical ingredient (API) businesses of Indian healthcare companies Strides Shasun and Sequent Scientific. It claims to be one of the world’s largest manufacturers of APIs, with operations in more than 40 countries and four manufacturing facilities in India, along with two research and development centers.
In its only annual report to date, Solara indicated that revenue for the period from February 2017-March 2018 came to INR5.6 billion ($78 million) while net profit stood at INR19.5 million. The company’s most recent quarterly figures show revenue of INR9.9 billion and net profit of INR349 million for the nine months ended December 2018.
The new capital will be used to support Solara’s growth initiatives aimed at expanding capacity in regulated markets. TPG Growth plans to leverage its experience as an investor in the global healthcare market as well as in Asia, where its healthcare-focused operating and investment platform Asia Healthcare Holdings has made a number of hospital investments.
The Solara deal represents TPG Growth’s first transaction in India’s pharmaceutical sector, though TPG Capital has a presence in the market through last year’s investment in drug maker Sai Life Sciences.
“Solara is at the leading edge of a growing life sciences market here in India, and we want to be a part of the exciting pathway of growth that lies ahead for the business,” said Shailesh Rao, head of India and Southeast Asia for TPG Growth, in a statement. “This investment will serve as a cornerstone of our growing efforts to invest in Indian life sciences.”
TPG Growth is currently deploying its fourth global fund, which closed at $3.7 billion in 2017 and invests in companies across a range of industries, with a focus on strong consumer brands. It also manages the Rise Fund, an impact investment vehicle that closed in 2017 at $2.1 billion. Including the Rise Fund, TPG Growth has about $13.5 billion in assets under management worldwide.
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