New Delhi, May 28 -- Homegrown private equity firm True North is investing in Embio Ltd, as the bulk drug maker looks to expand its capacity and invest in its contract manufacturing business.
True North struck a minority investment in the Mumbai-based drugmaker from its seventh private equity fund, the PE firm said in a statement. Terms of the transaction were not disclosed, however, media reports suggest True North likely acquired a 25% stake in Embio for $50 million (nearly Rs 480 crore).
This is the first investment in the pharmaceutical space from Fund VII and marks the third investment so far from the PE vehicle.
Embio plans to deploy the investment proceeds toward research and development (R&D), capacity expansion at the company's upcoming manufacturing facility in Dahej, Gujarat, and to scale up the contract development and manufacturing organisation (CDMO) business.
Avendus acted as the financial advisor to Embio Ltd for this transaction.
Founded in 1986, Embio makes complex active pharmaceutical ingredients (APIs) and intermediates, specialising in synthetic biology by integrating chemical and fermentation-based processes, alongside expertise in controlled substances.
Its portfolio spans multiple therapeutic areas including nasal decongestants, ADHD, Parkinson's disease, anti-epileptics and anti-HIV drugs among others. Over the past 35 years, Embio has built a global customer base across more than 80 markets including the US, Europe, Japan, Brazil, Canada, Africa and the Middle East.
VCCircle has gathered that Embio derives about 55-60% of its operating revenue from ephedrine, pseudoephedrine and norephedrine salts-controlled substances used largely in decongestants in cold and cough medicines.
As of fiscal 2025, the company reported revenue growth of more than 50% to Rs 270 crore, with a net profit of Rs 39 crore, according to VCCEdge, the data research arm of VCCircle. In the first half of last fiscal, it posted a revenue of Rs 158 crore, it is learnt.
Meanwhile, True North has raised seven separate investment funds with a combined corpus exceeding $3 billion, including co-investments. Within the pharmaceutical space, it has backed companies such as Anthem Biosciences, Biocon Biologics and Integrace.
It also began its private credit business in 2021 focusing on sector-agnostic performing credit. Through its first private credit fund it has fully deployed over Rs 2,000 crore and is currently raising its second private credit fund.
Published by HT Digital Content Services with permission from VC Circle.