Advent International to Invest $2 Billion in Telangana's Life Sciences Sector

HYDERABAD: Private equity firm Advent Internationalon Friday met IT and industries minister KT Rama Rao and said it will be investing about $2 billion bn (about Rs 16,650 crore) in Telangana. It also announced plans to set up a 50,000 sqft research and development laboratory in Genome Valley.

“Advent International, one of the world’s largest private equity investors, is amplifying its presence within Hyderabad's flourishing life sciences landscape with a substantial Rs 9,589 crore investment to acquire a controlling stake in Suven Pharmaceuticals and to also establish a 50,000 sqft  R&D lab in Genome Valley,”  said IT and industries KT Rama Rao in a statement said.

The announcement was made after Advent International managing director Pankaj Patwari and operating partner Vaidheesh Annaswamy met Rama Rao. IT and industries principal secretary Jayesh Ranjan and  Telangana Life Sciences chief executive officer  Shakthi M Nagappan were also present.

Earlier, Advent’s managing partner John Maldonado had engaged in a productive meeting with Rama Rao during his visit to the United States in 2022.

Advent’s commitment to the Hyderabad pharmaceutical sector was solidified by the creation of the “Cohance platform”, encompassing its active pharmaceutical API and contract development and manufacturing businesses - RA Chem Pharma, ZCL Chemicals, and Avra Laboratories -with Hyderabad as its headquarters. These investments mark a significant advancement in the city's trajectory as an emerging hub for pioneering life sciences innovation and exponential growth, the statement said.

The current investments underscore Advent's dedication to bolster its Cohance platform, with a combined investment of about $2 billion (approx Rs 16,650 crores), which is the largest investment of its kind in Asia.

"I'm delighted to witness the growth of Advent International's portfolio in Hyderabad’s life sciences sector. Their journey of multiple investments and expansion in Telangana exemplifies the vibrant ecosystem that the government and industry partners have nurtured. I am confident that Advent will continue to thrive in Telangana, and we will extend unwavering support to our industry partners in their growth endeavours," said Rama Rao.

“We are delighted to be able to announce today’s investment in Hyderabad’s thriving life sciences landscape. This expansion reaffirms our commitment to driving innovation, growth, and value creation in partnership with the ecosystem of the region. We are looking at making additional investments to further strengthen the position of the Cohance platform,” said Pankaj Patwari, managing director, Advent International.

Suven Pharmaceuticals, on September 26, had informed the stock exchanges, about the department of pharmaceuticals’ approval for acquisition of up to 76.1% shareholding in Suven Pharmaceuticals  by Berhyanda Limited, Cyprus, by way of transfer of 12,75,37,043 equity shares (aggregating to 50.1% of shareholding in the company) from promoters Jasti Property and Equity Holdings Private Limited. It also approved acquisition of up to 6,61,86,889 equity shares (aggregating to 26% of shareholding) from public shareholders through a mandatory open offer. The aggregate foreign investment, including investment from other foreign investors, may be up to 90.1% shareholding in the company. 

According to a GoI release earlier this year, Berhyanda is the wholly owned subsidiary of Berhyanda Midco Limited, which in turn is the wholly owned subsidiary of Jusmiral Midco Limited, which is collectively controlled by the Advent International GPE IX Funds and the Advent International GPE X Funds, which are ultimately managed by Advent International Corporation.