Girish Patel may Moov to engineering

As the market is abuzz with speculation on what would be Girish Patel’s next venture, the Ahmedabad-based FMCG wizard, who will resume work after a month’s break, seems to be interested in the engineering and manufacturing sectors. Patel is exiting the personal care and over-the-counter(OTC) drugs segment for life.

Talking to Business Standard, Girish Patel, the promoter of Paras Pharmaceuticals Ltd, that was recently sold to UK-based Reckitt Benckiser, said, “There are several interesting sectors like engineering and manufacturing,” adding that he had not yet made up his mind about the sector he would invest in next.

“I would now have to get back to the drawing board and evaluate the pros and cons of a potential investment,” said Patel, who is planning to invest in his individual capacity in small family-run businesses and is zeroing in on a suitable business venture for his son.

Patel has made around Rs 1,000 crore from selling his 30 per cent stake in Paras. He intends to utilise the proceeds in two ways — by acting as a co-investor with a private equity firm in small family-owned businesses that have the potential to create value in the long run; and by helping his son set up a business of his own.

“I will take a decision based on my son’s interest. We have to sit and discuss the merits of various projects and then take a call,” he explained.

Patel is exiting the FMCG sector after creating brands like Moov, Krack, Livon, Dermicool and Itch-Guard over the years. “I will not invest in any FMCG or personal care products firm, nor will mentor any such venture,” he emphasises. That includes, not investing in his brother’s FMCG venture Vini Group of Companies.

Patel began early, at 16, in a firm run by relatives. He built Paras Pharmaceuticals with his brothers who had exited the company and Actis PE picked up the stakes on both occasions. Eventually, the promoter’s shareholding in the company was reduced to 30 per cent, that was held by Girish Patel. This is when Patel took a call that he would not go for a listing to offer an exit to Actis.

“I had made up my mind by 2008, when I decided not to go for an initial public offering (IPO) with a 30 per cent stake. If I would have had over 50 per cent stake in Paras, I would have definitely gone for a listing. And from then on I did not look at Paras as a long-term venture,” he said.