Strategic Ventures Fund

Frontline Strategy's IIGF buys stake in Tejas Networks, in a secondary transaction

  • Strategic Ventures Fund fully exits its stake in Shilpa Medicare - SVF generated a total return of 4x on its investment
  • Shilpa is India's leading oncology API and CRAMS company, exporting its products to multiple countries
  • SVF had invested in Shilpa Medicare in 2005 to provide expansion capital to the company - it also assisted the company make an Austrian acquisition

Mauritius, January 18, 2010: Strategic Ventures Fund (SVF), a private equity and PIPE fund managed by Frontline Strategy Limited, has completely divested its investment in Shilpa Medicare, India's leading oncology API Company. SVF has made a total of 15 investments in Indian companies and this is SVF's 8th complete divestment. SVF had originally invested in Shilpa Medicare in October 2005 to provide growth capital to the company, which allowed the company to double its manufacturing capacity. SVF also assisted Shilpa Medicare in its acquisition of an Austrian pharmaceutical company in 2008. The fund has made a total return of 4x on its investment in Shilpa Medicare.

Harish Fabiani, Director, SVF, commenting on the investment, said "Shilpa Medicare, under the leadership of Mr. Vishnukant Bhutada, has scaled up in an impressive manner. We are extremely happy to have played a part in its development as a well positioned leading player in the Oncology API market"

Vishnukant Bhuda, Managing Director, Shilpa Medicare, said "We thank Strategic Ventures Fund for its active role in guiding the company at the Board level and actively assisting us in reaching our current growth levels. We shall treasure our association with the fund."

About Shilpa Medicare Shilpa Medicare Limited has carved a niche for itself in the exceedingly competitive and quality-conscious sphere of pharmaceuticals manufacturing. It produces and exports consistently high-quality Active Pharmaceutical Ingredients (API) fine chemicals, intermediates, herbal products and specialty chemical products using sophisticated technology, meticulously following international specifications.

The company has also been rapidly expanding its footprints in the CRAMS segment, and as a result, the company has earned its spurs as a successful and reliable partner within the pharmaceutical industry. Buyers within the country and from across the borders count on its fast track integrated process development and finely honed expertise of its skilled and experienced personnel. Shilpa is already exporting its products to USA, Canada, Europe, Australia, Japan and multiple other countries in South America, Asia and Africa.

About Frontline Strategy Founded in 2000, Frontline Strategy Limited (www.frontlinestrategy.com) is an asset management company with primary focus on private equity investments. Prominent investments of Frontline Strategy's first fund vehicle, Strategic Venture Fund (Mauritius) Ltd, include: CBay Systems & Services, Inc, an early-stage Frontline Strategy investment, and the largest provider of outsourced knowledge processing services for the global healthcare industry, after the acquisition of MedQuist, Inc; Astra Microwave Products, a manufacturer of high-end microwave and RF-based components for defense, space and civil telecom applications; Titagarh Wagons, India's leading private manufacturer of railway wagons; Alfa Transformers, a manufacturer of power, distribution and furnace (specialty) transformers; Shilpa Medicare, among India's leading specialty pharmaceutical manufacturers, primarily focusing on custom synthesis and oncology APIs.

Frontline Strategy currently manages two India centric funds: Strategic Ventures Fund and India Industrial Growth Fund and have just launched their new fund " The Clove Route Fund'.

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