Apax Partners, the UK-based private equity major, having raised $33.3 billion, is set for a major play in the growing fast moving consumer goods (FMCG) sector in India.
Even as its discussions are on with Jyothy Laboratories to invest as much as $150 million (Rs 695 crore), Apax is understood to have opened discussions with Chennai-based CavinKare for an estimated investment of another $150 mn.
CavinKare is an established FMCG company, with a major presence in a range of personal care, food & dairy products. It reported revenue of Rs 1,016 crore for 2010-11.
Investment bankers close to Apax indicate there have been a couple of rounds of discussions with CavinKare and the pace is expected to pick up by the end of the year.
| DEAL DETAILS Top PE/VC Investments in FMCG From 2010 – YTD | |||
| Company | Investors | Date | Amount |
| SuperMax Corp | Actis Wayzata | Mar-11 | 125 |
| SH Kelkar & Co. | Investment Partners | Sep-10 | 21 |
| Jyothy Lab | MCap Fund | May-11 | 5 |
| (Amount in $ Million) Source: Venture Intelligence | |||
CavinKare recently said it had plans to invest around Rs 500 crore in various expansion plans, including a new unit for several of its product ranges. It also said it might look at a public offer in due course. With the public markets in flux, discussions with PE players have been opened, bankers close to CavinKare added.
While CK Ranganathan, chairman of CavinKare, said there were no such fund plans, Apax could not be reached for comment.
CavinKare, during the past two years, had acquired growing companies to mark a foray into the namkeens and fruit drink segments as it diversifies to take these pan-India. While simultaneously further establishing its flagship personal care range.
Apax globally has a dedicated fund for the retail & consumer sector, with as much as $4 billion invested in marquee companies across the world. One of its portfolio companies, Tommy Hilfiger, recently took direct control of its operations in India by buying out its joint venture partner.
Jyothy Laboratories recently acquired the Indian arm of Germany-based Henkel AG for close to Rs 620 crore. It is looking to raise funds through private equity and in addition to Apax, global PE majors Actis and Bain are understood to be keen to invest.
“With the stock price of Jyothy dropping sharply by as much as 30 per cent to around Rs 170 an equity share from the earlier price of around Rs 320 when Jyothy bought Henkel in India, the PE players are understood to be reworking terms of investing in the company, leading to delays in closing the fund raising,” bankers said.
