The Burman family, the promoters of FMCG major Dabur India, is planning to set up a $200 million (around Rs 925 crore) private equity (PE) fund dedicated to the healthcare and life sciences segment.
This is the second major initiative of Burmans in the healthcare space after they sold their entire stake in cancer medicine manufacturing company Dabur Pharma for Rs 878 crore to French healthcare major Fresenius SE in 2008.
The Burmans are known to be investing in a greenfield facility to house the operations of Dabur Research Foundation, now a full-fledged contract research organization.
Former Dabur Pharma CEO Ajay Vij will be heading the contract research entity as well as the private equity fund. When reached for comment, Vij confirmed the development.
Over the last few years, the Burmans have increased their interests in the financial sector space. At the start of the last decade, they set up a joint venture, Aviva Life Insurance, with the United Kingdom’s Aviva Group.
Gaurav Burman, who is former Dabur India Chairman V C Burman’s younger son, is the Managing Partner of Elephant Capital, an AIM-listed private equity firm. Gaurav’s elder brother, Mohit Burman, who is a director on the Dabur India board, is the managing director of Elephant Capital, which has investments in East India Hotels, Mahindra Forgings, Nitco, Obopay and Global Cricket Ventures. Global Cricket Ventures, where Elephant invested in November 2009, is an online media and sports. Along with the Wadias of Bombay Dyeing and film actor Priety Zinta, Mohit Burman set up Kings XI Punjab, the Indian Premier League team.
Elephant Capital is a sector-agnostic firm focused on Indian companies, its website said. It looks at companies that have defensible strategies with some barriers to entry. Typically, it looks to invest US$10-20mn in a single transaction.
