Avesthagen raises euro 25 mn

Avestha Gengraine Technologies (Avesthagen), a Bangalore-based integrated lifescience company, has announced the closure of its series "C" fund-raising totaling euro 25 million by divesting 20 per cent equity to external investors, valuing the company at euro 115 million (Rs 667 crore).

The company raised money from Fidelity International (10 per cent), Limagrain group, France (5 per cent), Daninvest of Danone group, France (4.57 per cent), and Bennett, Coleman & Co Ltd (2.4 per cent).

With this, total foreign investment in the company is now over 31 per cent. The new investors are in addition to the existing investors, which include ICICI Venture, Cipla, Godrej Industries, Tata Industries and bioMerieux.

"Following this, the company has commenced preparations for its initial public offering, scheduled to hit the market by mid-2008, the time around which the commercial launch of its first products in bio-nutritional and bio-pharma categories is expected," said Villoo Morawala Patell, vice-chairman and managing director, Avestha Gengraine Technologies.

To pursue growth, the company has created four strategic business units: bio-pharmaceuticals, food for medicine (bio-nutritionals), seed for food (agri-biotech) and science and innovation, all headed by chief executive and chief scientific officers.

The company commenced its operations as an agri-biotech company in 2001 and then moved on to become a healthcare technology company, pursing its vision of convergence of food, pharmaceuticals, and population genetics, leading to preventive personalised medicine.

The other activity of the company has been agri-biotech product development of scientifically validated bioactive nutraceuticals, derived from Indian medicinal plants, as well as the development of bio-similar drugs.

"The funds will be used for Avesthagen's infrastructure expansion plans, including setting up of manufacturing units and research and development laboratories, and acquisition of technology companies to scale up production and marketing," she said.

The money raised would be deployed for creating infrastructure . like largescale production facilities and labs. The break-up, she said, was as follows -- Rs 100 crore for bio-pharma, Rs 70 crore for bio-neutritionals, Rs 60 crore for agri-biotech and Rs 15 to 20 crore for Avestha Good Earth.

"The markets addressed by us are all global in nature. Alliances in research and developments and marketing will continue to be an essential part of the strategy, with long term commitment towards our clients and strategic investors combined with a business model. The years 2006-08 will see accelerated growth with the launch of new solutions and products in all business units," Patell said.

The company registered Rs 1.1 crore profit and Rs 18 crore revenue in 2005-06. For the first nine months of 2006-07, the company's revenues touched Rs 17 crore and operating profit Rs 1.3 crore.