The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi, has acquired a 3% stake in Intas Pharmaceuticals, an Indian pharmaceutical company, for approximately $250–$270 million (₹2,000 crore). This transaction values Intas at around $8.5 billion (₹65,000 crore).
Transaction Details
ADIA purchased this stake from Temasek Holdings, a Singaporean investment company, which previously held about 10% of Intas. Following this sale, Temasek’s ownership has decreased to approximately 7%. The Chudgar family, founders and promoters of Intas, retain an 84% stake, while private equity firm ChrysCapital holds 6%.
ADIA’s Investment Strategy in India
ADIA manages assets estimated at $800 billion and has been actively investing in India across various sectors. Its investment portfolio includes major Indian companies such as Flipkart, Reliance Retail, Mindspace REIT, HDFC Capital, Mphasis, Paytm, Nykaa, and Mobikwik. Since 2018, ADIA has invested over $3 billion in the Indian market, reflecting its confidence in India’s economic growth and development.
About Intas Pharmaceuticals
Intas Pharmaceuticals is one of India’s leading pharmaceutical companies, ranking as the seventh-largest in domestic formulations. The company’s revenue distribution is diversified, with approximately 30% generated from the Indian market, 40% from the UK and European markets, and the remaining 30% from the United States and other regions. Founded in 1977 by Hasmukh Chudgar, Intas has expanded its global presence with 85 international offices and 16 manufacturing facilities worldwide. The company boasts a field force of over 7,000 executives covering more than 500,000 doctors across India.
Regulatory Approval
In October 2022, the Competition Commission of India (CCI) approved Abu Dhabi Investment Authority’s acquisition of the minority stake in Intas Pharmaceuticals. The approval was granted to Platinum Owl, acting as a trustee for Platinum Jasmine A 2018 Trust, with ADIA as the sole beneficiary and settlor of the trust. This regulatory clearance facilitated the completion of the transaction.
Implications of the Investment
ADIA’s investment in Intas Pharmaceuticals signifies its strategic interest in India’s pharmaceutical sector, which has been experiencing significant growth. The Indian pharmaceutical industry is known for its extensive generic drug production and is a major supplier globally. By acquiring a stake in Intas, ADIA positions itself to benefit from the industry’s expansion and the increasing demand for pharmaceutical products worldwide.
Moreover, this investment aligns with ADIA’s broader strategy of diversifying its portfolio and seeking growth opportunities in emerging markets. India’s large consumer base, coupled with its economic reforms and favourable demographics, makes it an attractive destination for long-term investments.
On a Final Note
Abu Dhabi Investment Authority’s acquisition of a stake in Intas Pharmaceuticals underscores its commitment to investing in India’s burgeoning pharmaceutical sector. This move not only enhances ADIA’s diversified investment portfolio but also reflects its confidence in the growth prospects of the Indian economy and its key industries. As ADIA continues to seek strategic investment opportunities, its involvement in companies like Intas highlights the increasing importance of emerging markets in global investment strategies.
