Washington-based Carlyle Group has invested $20 million in Ahmedabad-based pharmaceutical company Claris Lifesciences Limited to fund its Rs 190 crore (Rs 1.9 billion) expansion plans.
"Our company is investing Rs 190 crore to expand existing capacity and establish new facilities, in R&D and new product development. Of this, Rs 90 crore (Rs 900 million) has been invested by the Carlyle Group," Claris Lifesciences promoter Sushil Handa told reporters in Mumbai.
Of the remaining Rs 100 crore (Rs 1 billion), a significant portion will be funded through internal accruals and the remaining through debt and equities, Handa said.
Major portion of the expansion plan is expected to be completed by September 2006, and the last transaction will be completed by March 2007, he said.
Company plans to scale up the product sales to Rs 1000 crore (Rs 10 billion) in three years from present sale of Rs 350 to Rs 400 crore (Rs 3.5 to 4 billion) after the expansion and setting up of new facilities, he said.
"The new facilities would be utilized for developing new products like the erythropoetin which the company presently procures from outside," he said.
Carlyle MD and head, growth capital team for India Shankar Narayan said," Claris has opted to focus on highly profitable segments with less than three to four players to minimise competitive intensity."
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