BTS India Private Equity Fund Limited has revealed that it
will invest around $7 million in Parabolic Drugs. The latter is an emerging pharmaceutical
company in Chandigarh.
The capital will be used for funding Parabolic's next level
of growth and will be largely used for significantly expanding capacities for
its existing and new products.
With this, the Fund managed by Swiss based BTS Group has
completed yet another investment in pharmaceutical sector which is one of its
preferred sectors. Several of the pharmaceutical companies invested through its
earlier Fund have been doing exceedingly well and some of these have been
nominated by CNBC TV18, ICICI Bank and CRISIL for the SME awards.
Parabolic Drugs, which has facilites at Derabbasi and
Panchkula near Chandigarh, has already established itself with several global
pharmaceutical companies as an important supplier for APIs and bulk drugs
ranging across several products in the betalactum and cephalosporins range.
"The current round of capital raising is a step towards
further broadening the product and customer base, and take the company towards
its target of crossing Rs. 10 billion in sales over the next couple of
years," said Pranav Gupta, Chairman and Managing Director of Parabolic.
The company has obtained type II USFDA approval and
Certificate of Suitability for some of its products. It is currently in the
process of filing several DMFs and CEPs for further strengthening its exposure
to the regulated markets both in Europe and US.
Going forward, it also plans to enter non beta lactum
products in the next two to three years. The company has set up a
dedicated research and development centre in line with its plan for future
According to Mr K Srinivas, Managing Partner, BTS
"Parabolic has, over the years witnessed rapid growth and has become a
leading supplier of APIs to its global customers. We are excited about
partnering with Parabolic, which has a long term strategy of becoming a
preferred supplier of its products to global customers both in the regulated
markets in Europe and US. We are bullish on the Indian pharmaceutical sector
and its continued sustained growth."
YES Bank was the sole strategic advisor to Parabolic
for the transaction.