BTS backs pharmaceutical company

BTS Investment Advisors’ India-focussed fund has acquired an undisclosed stake in an Indian drug provider to fund the company’s next stage of growth.

BTS Investment Advisors, a Swiss private equity firm, has invested $7 million (€4.5 million) in Parabolic Drugs, an Indian pharmaceutical company.

Parabolic Drugs is based out of Chandigarh in northern India and manufactures active pharmaceutical ingredients and bulk drugs and sells them in the Indian and international markets. The company supplies its products to several global pharmaceutical companies.

The investment will be used to expand the product and customer base and “take the company towards its target of crossing 10 billion Indian rupees ($243 million) in sales over the next couple of years,” Pranav Gupta, chairman and managing director of Parabolic Drugs, said in a statement.

K Srinivas, vice chairman and managing partner of BTS, said the firm was looking forward to partnering with Parabolic Drugs in its “long term strategy of becoming a preferred supplier of its products to global customers both in the regulated markets in Europe and US.”

BTS has actively invested in India’s pharmaceutical sector and Srinivas said that “we are bullish on the Indian pharmaceutical sector and its continued sustained growth.”

The investment was made out of the $80 million BTS India Private Equity Fund that closed in June 2007 and makes expansion capital investments in small and medium-sized businesses in India. YES Bank advised on the deal.

The fund’s target sectors include pharmaceuticals, life sciences, manufacturing, engineering, information technology, telecom and entertainment.

BTS also manages the $60 million Swiss Technology Venture Capital Fund, an India-focussed fund that was launched in 1997. The firm has offices in Zurich and Mumbai.

Calls made to the firm were not returned by press time.