Mumbai : Parikh Family, founder and promoters of ZCL Chemicals Limited (“ZCL”) announced today, that they have sold the entire stake in the Company to Advent International (“Advent”), one of the largest and most experienced global private equity investors, for an equity value of ~INR 2,000 crore.

Pusuant to the signing of definitive agreements last month, Parikh family sold its entire ~80% holding and has completely exited ZCL. Of the above, ~26% will be transferred subject to the customary closing conditions and receipt of all applicable regulatory approvals. Morgan Stanley Private Equity Asia (“MSPEA”), a private equity platform that acquired ~20% stake in ZCL for ~INR 150 crore in 2016, has also exited ZCL for ~INR 390 crore. The Parikh family facilitated a seamless exit to the private equity fund through this transaction.

Formerly known as Zandu Chemicals Limited, ZCL has been one of the fastest-growing pharmaceutical companies in the active pharma ingredients or API space in India. APIs are the ingredient for the manufacture of drugs. 

In 2008, the Parikh family had acquired ZCL from Zandu Pharmaceuticals Limited at an equity valuation of ~INR 12.5 crore, resulting in a 160 times return in 12 years at the current valuations of ~INR 2,000 crore.

“ZCL has emerged as India’s fastest growing pharmaceutical company in the last 12 years. We are excited to achieve this strategic outcome for ZCL and its investors through this divestment. On behalf of the Parikh family, I would like to thank all the stakeholders, leadership team and employees, who have collectively created this world-class Indian company. We are confident that Advent’s resources will be a catalyst for ZCL’s next stage of growth and innovation,” said Mr. Nihar Parikh, Founder and Promoter of ZCL.

ZCL, which is a debt-free company as on date with surplus cash reserves, has posted a CAGR of 52.64% in terms of its valuation for the last 12 years.

Headquartered in Mumbai, ZCL combines the power of Science & Technology. It has a state-of-the-art US FDA facility at Ankleshwar, Gujarat. With strong research and development capabilities, ZCL is a 100% Export Oriented Unit, with over 90% revenue from established markets like Europe and North America.