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Drug major Cipla today said private equity player Fidelity Growth Partners will make investment in its consumer healthcare business.
The company, however, did not provide the details of the proposed investment.
Cipla's board "has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Ltd or its affiliates in its recently launched consumer healthcare business which is under incorporation," the company said in a statement.
Through the consumer healthcare business, Cipla has entered the over-the-counter (OTC) healthcare market in India, it added.
The investment is subject to execution of definitive agreements, and regulatory approvals, Cipla said.
Earlier this month, the Cipla board approved divestment of its consumer healthcare business to a wholly-owned subsidiary which is yet to be incorporated, by way of a slump sale for a consideration of Rs 10.5 crore.
The aforesaid divestment would enable the company to participate in the attractive and growing over-the-counter (OTC) market, it had said.
The Indian Consumer Health Care (CHC) market is currently a $4 billion market and is growing at a CAGR of 15%. It is expected to be a $10 billion market by 2020, the statement said.
Cipla's CHC division recently launched its first product Nicotex, a gum which helps smokers quit the habit.
Shares of Cipla Ltd were today trading at Rs 674.45 per scrip in the afternoon trade on BSE, down 1.24% from its previous close.
