TA Associates invests in pharma products supplier Ideal Cures

This the Ideal Cures deal be TA Associates’ third investment in the healthcare space in the last three years, according to Venture Intelligence


The PE firm said it is betting on the industry trend to outsource production of coatings for tablets, capsules as pharma firms seek solutions that cut processing time and carbon footprint. Photo: Hemant Mishra/Mint
The PE firm said it is betting on the industry trend to outsource production of coatings for tablets, capsules as pharma firms seek solutions that cut processing time and carbon footprint. Photo: Hemant Mishra/Mint

Mumbai: Global growth private equity firm TA Associates on Tuesday said it has invested in Mumbai-based Ideal Cures Pvt. Ltd, which makes coatings for tablets and capsules. It didn’t disclose financial details.

The private equity firm said it is betting on the industry trend to outsource production of such coatings as pharmaceutical firms seek solutions that reduce processing time and their carbon footprint.

“Ideal Cures has emerged as a provider of high-quality products and services in the tablet coating space, with a vast and diversified customer base globally,” said Dhiraj Poddar, country head for India at TA Associates Advisory Pvt. Ltd, who will join the board of the pharmaceutical company.

At the same time, Ideal Cures aims to leverage TA’s networking and corporate development capabilities to accelerate growth, it said in the statement.

The company was founded by Suresh Pareek in 1999. It has three manufacturing plants in Vasai near Mumbai, Jammu and Khambhat, Gujarat; and two R&D facilities in Mumbai and Vasai. Another plant is being built in Sikkim.

According to Venture Intelligence, this will be TA Associates’ third investment in the healthcare space in the last three years. It has previously backed Dr Lal Pathlabs Ltd, which went public in December 2015. It invested about $26 million in drug ingredients maker Shilpa Medicare in January this year.

Global private equity firms are increasingly becoming specialized, focusing on three or four key sectors on back of the global pool of knowledge and expertise that they can leverage, said experts at the Annual Mint Private Equity Conclave.

Last year, TA Associates had invested $140 million (Rs937 crore) in TCNS Clothing Co Pvt. Ltd which owns the W brand of clothing for women, to buy out shares from existing shareholders including Matrix Partners India, Mint reported on 19 August.

TA Associates has also invested in data analytics provider Fractal Analytics, broadband services provider Atria Convergence Technologies, mobile handset maker Micromax and financial technology services firm Bill Desk and Tega Industries, which makes products for the mining industry.

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