After selling @Paras_Pharmaceuticals to Reckitt Benckiser few days back, promoter of the company Girish Patel is planning to launch a private equity fund to help small, family run businesses transform into professionally-run companies.
Besides, the PE fund, Patel wants to set up a company for his son Arpit, an MBA from the US.
Paras Pharma owns brands like Moov, DermiCool, D'Cold and Krack with revenues of Rs.401.4 Cr and an EBITDA of Rs.108.3 Cr.
Private equity investor @Actis_LLP sold its 63% stake in Paras to Reckitt. Others, including Girish Patel and his family who hold about 30% stake and Sequoia Capital also sold their stake.
Girish Patel's father Naranbhai Patel started Paras Pharma in 1983 with 11 peple and within two years of its launch, his sons Girish, Darshan and Devendra joined the family business. The turnover of Paras was just around Rs 40 lakh then. After 25 years, its sales crossed Rs.400 Cr during 2009-10 and employs over 700 people.
As soon as the brothers joined the business, the company launched Moov. Witin a decade, they launched two more brands, Krack and D'Cold and then came ItchGuard, RingGuard, Dermicool and Stopache as well as personalcare brands like Borosoft, Livon and Recova.
By 2000, Paras started planning for an IPO, but then dropped plans for IPO after getting an offer from private equity fund Actis in 2006. Actis acquired 23% stake in the company for $43 Mn. He then cracked a deal with @SequoiaCapIndia for investing another $12 million in Paras Pharma in October the same year. Actis later increased its shareholding to 68%.