Piramal Group’s India Resurgence Fund (IndiaRF) is in advanced negotiations to acquire a controlling stake in Anthea Aromatics, a specialty chemicals manufacturer backed by ICICI Ventures, according to sources familiar with the matter. The proposed acquisition involves a combination of primary and secondary investments totaling up to Rs 1,100 crore ($132 million).
Established in 1992 by Dr. Vincent Paul, Anthea Aromatics specializes in chemical intermediaries used in flavors and fragrances, with its own research and development center in Navi Mumbai.
ICICI Ventures, which invested Rs 120 crore in Anthea Aromatics in 2016, holds a significant minority stake of 25-30% in the company, sources revealed.
The discussions between IndiaRF and Anthea Aromatics are reportedly in their final stages, with an agreement anticipated in the coming weeks. Under the proposed deal, ICICI Ventures would divest its entire stake to IndiaRF, marking the exit of its eight-year investment, while the company’s promoters would retain a small minority stake.
Anthea Aromatics faced challenges with its new manufacturing facilities in Karnataka, contrasting with the success of its facilities in Maharashtra, according to sources.
IndiaRF, co-sponsored by the Piramal Group and Bain Capital Credit, focuses on investments across various sectors, targeting businesses with potential for turnaround through recapitalization and operational improvements.
The fund’s first fund of $629 million attracted investments from entities like Canada Pension Plan Investment Board (CPPIB) and the International Finance Corporation (IFC), with discussions currently underway for its second fund.
Notable acquisitions by IndiaRF include the Active Pharmaceutical Ingredients and CRAMS Business of Ind-Swift Laboratories and a controlling stake in Ivy Hospitals. The fund also acquired majority stakes in Impresario Entertainment, which operates the popular Social chain of pubs.
