Kedaara Capital Investment Managers Ltd is likely to emerge as the frontrunner to acquire a minority stake in Olive PharmaScience Ltd in a deal that values the company at around ₹4,500 crore, according to four people familiar with the matter.
“The private equity fund will likely acquire close to 20% or (stake worth) about $100 million in Olive,” said one of the people cited above. “The round is predominantly secondary in nature as the company is profitable and does not need too much fresh capital to expand,” the second person said, adding that the deal is currently undergoing due diligence.
“Other funds, including Motilal Oswal Private Equity and Quadria Capital, were also evaluating the asset,” the third person said, confirming the above details.
All the four people spoke on the condition of anonymity, as the discussions are still private. Olive, Kedaara, Quadria and Motilal did not respond to Mint’s requests for a comment.
Pharma push
Kedaara's potential investment comes as it pushes to expand its exposure to the healthcare and pharma sectors. Mint reported on 7 January about the private equity firm's interest in buying a majority stake in Mohali-based Tynor Orthotics. Its other investments include AMI Lifesciences Pvt. Ltd, AGS Eye Hospital, Oasis Fertility, Oliva Skin & Hair Clinic, Universal Nutriscience and Vijaya Diagnostic Centre, according to its website.
Mumbai-based Olive PharmaScience has been at the forefront of global healthcare innovation for over five decades and has delivered high-quality pharmaceutical solutions tailored to meet the evolving needs of the industry. It specializes in developing and manufacturing customized pharmaceuticals, over-the-counter products, and dietary supplements, with a strong focus on soft gelatin dosage forms.
Founded by promoter-director Jigar Shah along with Kamlesh Shah and Hardik Shah, Olive PharmaScience claims to have pioneered the technology of transforming conventional oral dosage forms into advanced soft gelatin formulations.
With three manufacturing facilities in India, it has extensive expertise in research and development, which has enabled it to enhance the bioavailability and therapeutic effectiveness of its formulations. Its financial details were not immediately available.
Olive competes with several leading players, including Akums Drugs & Pharmaceuticals Ltd, Alkem Laboratories Ltd, Torrent Pharmaceuticals Ltd, Jubilant Pharmova Ltd, Meyer Organics Pvt. Ltd and Strides Pharma Science Ltd.
Global CRDMO hub
India's contract research, development and manufacturing organization (CRDMO) industry is poised for rapid expansion, with its market size expected to grow from $3-3.5 billion in 2025 to $22-25 billion over the next decade, according to a 2025 report by Boston Consulting Group.
The report attributes the growth to global pharmaceutical companies diversifying their supply chains, rising demand for biologics and India's cost competitiveness, which is strengthening its position as a preferred global CRDMO hub.
The consultancy firm also noted that India’s strong foundation in small molecule manufacturing, while highlighting new opportunities in biologics, antibody drug conjugates, gene therapies, and RNA therapeutics.
However, challenges such as talent shortages, regulatory complexities, and supply chain dependencies must be addressed to sustain this growth, BCG said.