Natural Capsules has announced a significant milestone in its growth journey with the strategic investment from Somerset Indus Capital Partners, a prominent healthcare-focused private equity fund. The investment involves the acquisition of a minority stake in Natural BioGenex Private Limited (NBPL), an unlisted subsidiary of Natural Capsules Limited.

Somerset Indus Capital Partners, known for its expertise in the healthcare sector, has invested approximately Rs. 75 crores at a pre-money valuation of Rs. 250 crores in Natural Capsules Limited. As a result of this transaction, Somerset will hold a stake of between 23% and 28% in NBPL, underscoring their confidence in the company's growth potential and longterm success.

NBPL is constructing a state-of-the-art Greenfield facility in Tumkur, near Bengaluru. This state-of-the-art plant will manufacture active pharmaceutical ingredients (APIs), including Betamethasone, Dexamethasone, and Prednisolone, along with their intermediates and derivatives. The facility will not only enhance India's self-reliance in the API manufacturing sector but also contribute to the reduction of import dependency, particularly from China.

Commenting on the deal, Sunil Mundra, Managing Director, said "We are delighted to collaborate with Somerset Indus Capital Partners. This investment is a testament to our shared vision of advancing healthcare solutions and fostering self-reliance in India. The PLI incentives provided by the Government and the availability of key raw materials locally have created a conducive environment for our plans.

The investment from Somerset Indus Capital Partners reinforces the Company's commitment to innovation and research and development. We have made substantial investments in R&D, and we will be the only integrated steroidal API manufacturing plant with the ability to undertake fermentation and chemical synthesis reactions to manufacture enduse steroidal APIs right from KSMs. This investment from Somerset Indus Capital Partners should propel the Company towards a future of immense possibilities, driving growth and contributing to India's pharmaceutical landscape.

We also extend our appreciation to Phillip Capital India Private Limited for their role in facilitating this significant investment."

Commenting on the deal, Kannan Ramesh, Partner at Somerset Indus Capital Partners, said "We are thrilled to be a part of this initiative undertaken by Natural Capsules Limited. This strategic partnership will not only contribute to India's de-risking strategy but also pave the way for future exports. We are confident in Natural Capsules' capabilities and look forward to a fruitful collaboration."