In the backdrop of the recent deal where Actis, the private equity major, sold the controlling stake in Paras Pharma to Reckitt Benckiser, its partner and South Asia head, J M Trivedi, speaks to Reghu Balakrishnan, on the companies and Actis' future plans. Edited excerpts:
Whats the equation between Reckitt and Paras?
They have a good complementary portfolio. Reckitt has a strong portfolio of international healthcare brands such as Dettol, Disprin and Nurofen. This portfolio has several synergies with Paras’ extensive healthcare platform in India, which includes brands such as Moov, Krack, ItchGuard, RingGuard and D’Cold. Reckitt can benefit from this platform of Paras to further strengthen its healthcare position in India, as it has done in international markets.
For Actis, how successful was the deal?
It demonstrates Actis’ commitment to building sustainable value for all our partners. We are very pleased with the result. The Paras team has built an organisation and a portfolio of much loved brands in India, that sit well alongside a leading global company such as Reckitt Benckiser, thus providing immense value to both companies.
Does Actis plan more exits this financial year (FY)?
As a private equity investor, we are continually evaluating our portfolio to assess and optimise value creation for all our partners and investors. We do not comment on any specific portfolio companies.
Will you invest more in this FY?
Actis is committed to investing in India and we are continually evaluating opportunities to back strong companies and entrepreneurs
As a global PE player, will the allocation for India be increased?
We have a strong allocation to India. We expect to invest $800 million to $1billion in India from our current $3-billion pan-emerging markets fund.
