Mumbai: Umesh Modi Group’s Win-Medicare Pvt Ltd (WMPL), the maker of household brands like Betadine and Movicol, is looking to sell a minority stake in a deal valued between $150 million and $200 million, according to three sources familiar with the matter. The company has appointed EY as its advisor to lead the search for potential buyers, they said.
“About $100 million is likely to be secondary, with the parent entity expected to offload a minority stake, while the remaining component would be primary but subject to the company’s expansion plans,” two of the people cited above said on the condition of anonymity.
The third person said, “The deal was launched about two months ago and several private equity firms have been tapped as part of the process. The Modi Group has sought an overall valuation of about ₹3,000-4,000 crore for the subsidiary, which is clocking a little over ₹1,000 crore in revenue.”
Win-Medicare and EY had not responded to Mint's requests for comment at the time of publishing.
Business portfolio
Established in the early 1980s, WMPL sells formulations in various therapeutic segments, including antiseptic, analgesic, gastroenterology, gynaecology, dermatology, neurocare, and protein supplements. It claims to be among India’s fastest-growing pharmaceutical companies, with a robust domestic presence and a growing footprint across Asia and Africa.
Its diverse portfolio also spans other therapy areas such as hepatology, scar management, urology, and footcare. With three manufacturing plants and an expansive distribution network, the company markets and distributes its over-the-counter healthcare products in India through Win-Healthcare, established in 2005. It markets products such as Mederma, a market leader in the anti-scar segment, Jungle Formula, an international mosquito repellent brand, the Pheet footcare brand from Dermatonics (UK), and Physiomer, a natural nasal care solution.
WMPL also has a subsidiary in Bangladesh that formulates drugs, which commenced operations in 2012. Over the years, Win-Medicare consolidated its subsidiaries Mundipharma (Bangladesh) Private Limited and Mundipharma Trading Bangladesh Private Limited, according to a Crisil report.
In 1990, Modi-Mundipharma Pvt Ltd (MMPL) was incorporated as an equal joint venture between the Umesh K Modi group, India, and the Mundipharma group, Switzerland, and subsequently acquired WMPL. MMPL also sells formulations in various therapeutic segments, including, respiratory, cardiology, gynaecology, pain relief, and other chronic therapy segments. The joint venture also manufactures, markets, and distributes Revlon cosmetics, hair color, and personal care products in India under its beauty products division.
Market dynamics
India’s healthcare market, worth about $180 billion in FY23, is projected to expand to $320 billion over the next two years at a compound annual growth rate of about 12%, according to a Bain report. Of this, the healthcare innovation opportunity could be worth about $60 billion by FY28, accompanied by structural ecosystem changes such as consolidation, a shift in profit pools, and partnerships, the report added.
Bain said this is likely to be shaped by the rising consumerization of health, reconfigurations to the global healthcare value chain, a deepening of Indian scientific and technological expertise, and regulatory tailwinds. The industry has also seen a shift in investment themes over the past few years, marked by a growing interest in pharma services, the opening of investments in medtech and biotech, and increased investor focus on positive unit economics in healthtech.
In the consumer health, generics and over-the-counter segments, Win-Medicare competes with players such as Encube Ethicals (formulates creams and ointments), JB Chemicals & Pharmaceuticals, Sun Pharma, Alinamin Pharmaceutical and Stada Arzneimittel AG, as per online reports. Many of these companies are backed by prominent private equity firms or are in various stages of their deal-making journey.
In FY25, Win-Medicare reported revenue from operations of ₹981.67 crore, up from ₹918.69 crore a year earlier. Standalone net profit improved to ₹11.63 crore from ₹7.12 crore in FY24, according to filings sourced by Tofler.