Alved Pharma goes to ICICI Ventures for INR 30 cr

Private equity (PE) major ICICI Ventures is acquiring Chennai-based standalone pharmaceutical and veterinary company Alved Pharma and Foods. RFCL, a wholly-owned veterinary, chemicals and medical diagnostic company of ICICI Ventures, is learnt to have signed a definitive agreement with Alved Pharma and Foods for a complete buyout. Alved Pharma and Foods is a market leader in southern India in the veterinary products segment with significant export to the middle east and African Markets. The company is expected to close this financial year with INR 18-crore sales revenue. Although RFCL declined to comment on the deal, sources said the deal could be in the range of INR 20-30 crore and an official announcement was expected next week. This would be RFCL’s third acquisition in the domestic healthcare market. Earlier this week, RFCL acquired Godrej’s Medical Diagnostic, including its assets and global alliance partners for an undisclosed amount. In July, RFCL had also acquired Wipro BioMed, IT major Wipro’s healthcare diagnostic business division. The Delhi-based company aspires to be a global company and is now looking at expanding its footprint in overseas regulated market through the inorganic route. “We are looking at companies which have advanced technology in the animal healthcare, medical diagnostics and laboratory chemicals segment in Europe. We hope to close a deal in the next 4-6 months, which could be in the range of $25 million,” RFCL managing director Sushil Mehta told ET. The acquisition will be funded through internal accrual, debt and equity, he added. The company is expected to close the financial year with a turnover of INR 300 crore. At present, the domestic market is the major source of RFCL’s revenue, with exports accounting for just 3% of the total revenue. Going forward, the company will aggressively pursue growth through the inorganic route and the share of the overseas market is expected to increase to a significant chunk. RFCL has three business segments

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