Kotak Alternate invests in nutraceuticals CDMO Tirupati Medicare

Kotak Alternate Asset Managers have announced an investment of ₹1,050 crore in Tirupati Medicare Ltd, a contract development and manufacturing firm in the nutraceutical, pharma and Ayush (or traditional products) segment.

This investment facilitates a complete exit of the existing investor Affirma Capital, besides supporting Tirupati’s expansion plans, a note on the development said.

Founded in 2005, Tirupati caters to companies including Herbalife, Glanbia, Abbott, Haleon, Cipla, Dr Reddy’s, Torrent, Macleods, Pfizer, Lupin and Dabur, the note added. Tirupati manufactures brands including Optimum Nutrition, PediaSure, Centrum, Endura Mass, Montair LC, Azee, Softovac, and others. It holds the distinction of having the largest installed capacity for oral solids and powders among Indian nutraceutical contract manufacturers, the note said.

Eshwar Karra, Managing Partner at Kotak Alts, said, Tirupati, the largest player in the Indian nutraceutical contract manufacturing space, was well-placed to tap opportunities, given its “marquee customer base” and extensive manufacturing capabilities across various dosage forms.

Preparing for an IPO

Rahul Shah, Partner at Kotak Alts, said their investment in Tirupati was at a time the company is poised for growth in the domestic market, with plans for exports. The support would also be toward’s Tirupati’s expansion plans, besides assisting the company in preparing for an IPO, he said.

Ashok Goyal, Tirupati Director and Chief Executive said, “At a stage where the business was growing at an unprecedented rate, we received strong support from Affirma Capital in setting up corporate governance and bringing in efficiencies in overall management.” Dinesh Goyal, Founder and Head of Strategy and Merger and Acquisition at Tirupati, said, they had scaled up largely through organic sources. Tirupati had recently acquired Surya Herbal and is looking to work with the new investor to identify and execute inorganic growth opportunities, he added.