KKR's JB Chemicals exit cements its strong healthcare track record

KKR & Co’s ₹11,900 crore ($1.42 billion) exit from JB Chemicals and Pharmaceuticals marks another successful bet in India's fast-growing healthcare sector, underscoring the US-based private equity giant’s strong track record in the space. KKR exited JB Chemicals on Sunday.

 

The sale of its 46.39 per cent stake in JB Chemicals to Torrent Pharmaceuticals comes over four years after KKR acquired control of the company in 2020. The exit follows its blockbuster five-time (5x) return in Max Healthcare in 2022, which remains the largest block deal by a private equity firm in India to date, a person familiar with the matter said. In JB Chemicals, the US-based firm made 36 per cent gross internal rate of return in the exit, including sale of part of its stake via block deal early this year.

   

The JB Chemicals deal adds to KKR’s expanding healthcare portfolio in India, which includes stakes in Healthcare Global Enterprises, Baby Memorial Hospital (BMH), Healthium Medtech, and Infinx Healthcare, a US-based healthcare technology firm focused on revenue cycle and patient access solutions. 

 

Since the start of 2024, KKR’s private equity arm has deployed $2 billion in India. In June, the firm arranged $600 million in financing for the Manipal group through KKR Capital Markets. The deal, anchored by KKR’s private credit and insurance platforms, is aimed at supporting Manipal’s long-term growth strategy.

 

The Manipal group, which operates Manipal Health Enterprises, one of India’s largest multispecialty hospital chains, has been active in the M&A (mergers and acquisitions) market. Manipal had in April 2023 sold a significant stake in its hospital business to Singapore’s Temasek Holdings in a transaction valued at nearly $2 billion.

 

KKR's back-to-back healthcare bets come amid rising investor appetite for India's healthcare sector, fuelled by growing demand for quality care, rising incomes, and increased insurance penetration.

 

In 2024, healthcare funding saw an 80 per cent rise in deal volumes, with notable activity in medtech and single-specialty hospitals. The IT/ITeS sector deal value grew 300 per cent, driven by major transactions such as Perficient ($3 billion), Altimetrik ($900 million), and GeBBS ($865 million). Single-specialty hospitals saw particular interest, with deal volumes doubling as investors targeted underpenetrated categories such as eyecare, oncology, and IVF, as per a report by Bain & Company. 

India plans

  Has invested $2 bn in India since 2024, signalling continued interest in market

  Recent healthcare investments include Healthium, BMH, HCG, and Infinx Healthcare

  In June, it arranged $600 mn in financing for Manipal Group’s expansion

  Its India strategy focuses on structured capital and long-term bets in healthcare and education