Almost entirely concentrating on China, Southeast Asia, and Australia, Platinum Equity has made 11 acquisitions in Asia in the last ten years. In the latest, Inventia Healthcare, the international private equity firm ventured into India for the first time, a move that seems to validate the market’s increasing attraction to large-cap investors. According to Platinum’s co-president Jacob Kotzubei, it is evidence of how India buyouts have changed and opened up new avenues for the company’s operations and M&A-focused approach.
The need for various forms of operational help is greater in more established businesses, he clarified. “In India, there is an increasing number of founder-owned or family-owned businesses that are seeking a partner who can offer both operational expertise and investment capital as they prepare for succession or address other generational issues.” This description describes Inventia. Even though Janak Shah’s death earlier this year had left their children in charge of day-to-day operations, the family’s escape plan had been planned out for years.
As the first exit from InvAscent’s third fund, Inventia is interpreted by Buggana as a powerful confirmation of an investing strategy in pharmaceuticals that is centered on generics. Due to initiatives to speed up product development and broaden distribution, Inventia’s sales increased from INR 4 billion to INR 7.5 billion during the holding period, while EBITDA increased from INR 450 million to INR 1.8 billion. “They submitted more than 500 applications to obtain regulatory approval to sell goods in a number of international marketplaces.