Piramal Alternatives, the fund management division of the Piramal Group, has invested Rs 110 crore in Biodeal Pharmaceuticals Limited, a contract development and manufacturing company through convertible instruments from its Performing Credit Fund.
The investment aims to enhance infrastructure, upgrade technology, and establish a specialised nutraceuticals manufacturing facility, the investor said in a press statement..
Biodeal is a significant player in contract manufacturing, serving a diverse clientele. It holds a prominent position in producing nasal sprays for both international and domestic pharmaceutical giants. Earlier in 2024, the company secured Pharmaceutical Inspection Co-operation Scheme (PIC/S) approval. Its product portfolio encompasses various dosage formats such as dry powder inhalation capsules, tablets, ointments, lotions, and dusting powder.
Management view
“The strong market potential of the nasal sprays segment, along with the Biodeal’s leading position in contract manufacturing and adherence to global regulatory standards, presents an exciting opportunity for us," said Kalpesh Kikani, CEO, Piramal Alternatives.
"Through Piramal Alternatives, we are committed to providing flexible, bespoke, and value-accretive capital to support Biodeal's growth trajectory in this promising segment," he added.
Piramal Alternatives, the asset management arm of Piramal Group, manages $1.5 billion and focuses on addressing credit gaps in the mid-market segment. The flagship funds include the India Resurgence Fund (India RF), the Piramal Performing Credit Fund, the Hybrid Growth Private Equity Fund, and the India Access Fund (Private Equity Fund of Funds).
“The infusion of capital from Piramal Alternatives will empower the Biodeal to be ready with new upcoming facility in compliance with USFDA accreditations in coming 12-15 months," said Anurag Kumar, MD, Biodeal Pharmaceuticals Limited .
"This capital raise will boost us to accelerate our existing production capacity by 3 times and will bolster our manufacturing capabilities, and expand our market reach,” he added.
Emkay Global was the exclusive financial advisor to Biodeal for this deal.
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Biodeal operates as a fully integrated pharmaceutical manufacturing and marketing entity, offering a wide array of products in Pharmaceuticals, Cosmetics, and Nutraceuticals. It caters to customers in 36 countries through contract manufacturing services and its proprietary brands.
The company's manufacturing facility in Nalagarh, Himachal Pradesh, has a WHO-GMP guidelines and also holds ISO 9001:2015 accreditation. Biodeal also has a strong global presence with its range of branded products, catering to diverse consumer needs.
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