Pharma company ZCL Chemicals today raised Rs 170 crore by selling an undisclosed stake to a fund managed by Morgan Stanley Private Equity Asia (MSPEA).
The equity investment in ZCL, which was formerly known as Zandu Chemicals, will be used for the company's growth, a statement issued said.
"We had put in place a strategy for 2020 and bringing in a global partner like MSPEA is a part of that strategy," ZCL chairman and managing director Ajay Parikh said.
Its executive director Nihar Parikh said the company, which gets 90 per cent of its revenues from overseas markets, has been growing at a compounded annual growth rate of 30 per cent for the last five years and the capital infusion will help it innovate and expand on a fast track in the established as well as emerging markets.
ZCL said it is a speciality pharma company focusing on niche therapeutic areas of central nervous system (CNS), anti-retroviral (ARV) and controlled substances.
Apart from consolidating its position in the areas where it is present, it is also looking to expand its product portfolio with anti-diabetic, anti-coagulants and other therapy areas, the statement said.
Its facilities are located in Ankleshwar in Gujarat and employs 40 people in research and development.
MSPEA's co-head Nirav Mehta said life sciences and healthcare are two of the fastest growing industries in the country and hence a focus area for the fund.
"ZCL has emerged as a promising company within the space, and has put in place the building blocks for its future growth, with their focus on research and development, their emphasis on quality and governance," Mehta added.
ZCL was established in 1991 as a speciality chemicals subsidiary of Zandu Pharma. In 2008, after acquisition of Zandu Pharma by Emami, Ajay Parikh re-acquired ZCL and re-invented it as a pharmaceuticals company.
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