New York Life Fund picks up minority stake in Avesthagen

New York Life Investment Management India Fund has picked up a minority stake in the Bangalore-based Avestha Gengraine Technologies (Avesthagen) for Rs 22.5 crore.

Avesthagen will invest the money in expanding its business and to increase its global presence. Avesthagen is focussed on the convergence of food, pharmaceuticals and clinical genomics. The company provides solutions to agriculture and health disorders such as degenerative diseases, metabolic disorders and infections.

Villoo Morawala Patell, vice-chairperson and managing director, Avestha Gengraine Technologies, said, "With the global market demand rising, Avesthagen is poised for a significant growth. We believe the investment by NYLIM India Fund is an endorsement of our business model."

According to Srinivas Chidambaram, managing director, Jacob Ballas Capital India (JBC), the investment advisor to NYLIM India Fund, "With its unique business model, Avesthagen has the potential to develop a valuable IP portfolio which can be leveraged globally in the bio-pharma, bio-nutritional and bio-agriculture sectors."

Avesthagen's clients include global and Indian companies such as bioMerieux, Cipla, Godrej Industries, Nestle, Groupe Limagrain, and Danone. Avesthagen expects to commercially launch some of its products for the bio-pharma and bio- nutritional markets in 2008.