Information on the Target

Softgel Healthcare Private Limited (SHPL), based in Chennai, is a distinguished entity within the Madras Pharma Group, a premier contract manufacturing organization in southern India. SHPL operates eight manufacturing facilities that encompass all dosage forms, with a particular focus on research, development, and manufacturing of soft gelatin capsules and probiotics. The company's global customer base spans across the Americas, Africa, Asia, and India, with an impressive 80% of its sales derived from exports. Notably, SHPL's manufacturing facility in Chennai adheres to internationally recognized certifications and registrations, including USFDA, TGA, EU-GMP, and Health Canada.

Industry Overview in India

The pharmaceutical industry in India has emerged as a global powerhouse, characterized by its expansive market size and rapid growth rate. As the third-largest pharmaceutical market in the world by volume, India contributes significantly to global pharmaceutical exports, particularly in generic drugs and contract manufacturing services. The country showcases a diverse range of pharmaceutical and biopharmaceutical products, further solidifying its position as a prominent player in the global market.

With increasing investments in research and development, Indian pharmaceutical companies are innovating and expanding their product portfolios to cater to the growing demand for high-quality, affordable medications. The emphasis on quality and regulatory compliance has helped Indian manufacturers gain credibility in international markets, which, coupled with a robust supply chain, positions India favorably for pharmaceutical exports.

Moreover, as healthcare demands continue to rise, driven by increasing population and advancements in medical science, the need for efficient and reliable contract manufacturing organizations (CMOs) has become more pronounced. This trend is expected to boost the growth trajectory of companies like SHPL, which offer specialized services such as softgel capsules and probiotics.

The Rationale Behind the Deal

The investment by Everstone Group into SHPL is strategically timed, as the company seeks to capitalize on SHPL's strong research and development capabilities and advanced manufacturing processes. Everstone’s commitment to driving operational excellence aligns with SHPL's vision to enhance its market position and expand its global reach in the contract development and manufacturing organization (CDMO) sector. This partnership is poised to unlock value and accelerate SHPL's trajectory toward becoming a leader in the industry.

Information about the Investor

Everstone Capital, headquartered in Singapore, serves as the private equity arm of the Everstone Group. With a strong commitment to fostering economic growth and creating sustainable value, Everstone Capital operates from seven offices around the world, focusing on the mid-market segment with a control mindset and growth-centered approach. Their experience and strategic resources position them uniquely to elevate organizations to peak potential.

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The investment in SHPL by Everstone Group is viewed as a promising opportunity for both parties involved. By leveraging Everstone's expertise and resources, SHPL is set to enhance its product offerings and expand its operational capabilities, positioning itself as a key player in the global CDMO landscape. Additionally, the pharmaceutical sector's growth trajectory in India provides a conducive environment for such investments, suggesting that this collaboration could yield significant returns.

The presence of seasoned professionals from Everstone on SHPL's board, alongside the existing management team, fosters a balanced governance framework that is likely to drive strategic decision-making and innovative practices within the organization. Furthermore, the partnership is poised to enhance competitive advantages through an increased focus on research and development, reinforcing SHPL's market position.

Ultimately, with the increasing global demand for high-quality nutraceuticals and pharmaceuticals, the investment by Everstone in SHPL not only signifies a sound strategic choice but also represents a transformative potential within the industry's evolving landscape. Should the partnership unfold as anticipated, this investment could indeed deliver substantial value for Everstone while accelerating SHPL’s journey towards achieving its growth ambitions.

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