PE firm Affirma Capital to invest $50m in India’s Tirupati Group

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Affirma Capital, the newly-created GP spinout of Standard Chartered Private Equity (SCPE), will invest $50 million in the Tirupati Group, a nutraceuticals-focused contract research and manufacturing company.

The fund infusion from Affirma will aid the company’s organic and inorganic growth initiatives, said media reports quoting the PE firm’s statement.

Mragank Jain, Executive Director at Affirma India, said that the firm is optimistic about the growth prospects of the nutraceuticals and wellness opportunity. “We look forward to supporting the company’s strategy and driving growth, both in India and overseas, using our longstanding experience as an investor in the emerging markets, sector expertise and global network.”

Affirma was created after UK-based global lender Standard Chartered sold its private equity unit to global alternative investment firm Intermediate Capital Group (ICG) for £790 million through a management buyout in December last year. The PE unit has invested in over 35 companies across the emerging markets, including in Southeast Asia, India, and China.

The investment in Tirupati is Affirma’s second disclosed deal in India after it participated in a $130-million funding for Northern Arc Capital in March this year.

In other recent Asian deals, the PE firm invested in Shanghai-based peer-to-peer (P2P) lending platform Dianrong last month. In May, it agreed to acquire a controlling stake in South Korean Hwa Sung Cosmetics.

The firm said it is committed to backing best-in-class management teams, and continues to actively seek investment opportunities in Asia, Africa and the Middle East.

Established in 2005, Tirupati has developed capabilities to cater to the wide range of nutraceutical product portfolio basket of its customers, which include protein supplements, ayurvedic / herbal supplements, multivitamins, minerals, fortified food and beverages, sports nutrition and pre / pro – biotic supplements.

“We will leverage our capabilities to deepen our presence in emerging product segments including sports nutrition and pre-biotic/pro-biotic supplements and together with Affirma Capital we would develop additional growth avenues over the next few years,” said Ashok Goyal, CEO of Tirupati Group.

Citadel Management Consulting, PwC and Themis were advisers to Tirupati Group. Praxis Global Alliance, Deloitte and J Sagar Associates advised Affirma Capital on this transaction.