KOCHI: Konark Capital, a fund management company based in Rajasthan, recently acquired a 20.24% stake in Kochi-based Agappe Diagnostics Ltd (ADL) for Rs 50 crore. Konark acquired this stake through its investment fund Sycamore Holdings Mauritius.
Founded two decades ago, ADL had built up a successful domestic and international in-vitro diagnostic (IVD) business over the years.
The fresh capital from Konark comes at a time when ADL is planning for the expansion of its production facility and product portfolio.
"Now, we are planning to enter areas like immunology, microbiology and urine analysis and come out with four to five different types of products which could be import substitutes," said Thomas John, managing director of ADL.
ADL, which had originally started as a seller of imported products, later started developing products to meet the needs of local markets. One such product was 'Specific Protein Analyser', which helps rural laboratories to detect disease producing proteins at a relatively low cost. This product now accounts for 10% of the total revenues of the company.
ADL is now setting up its second plant adjacent to its corporate office near Kochi. Built at a cost of Rs 20 crore, the 40,000-sqft plant is due for starting production by October.ADL's products are now being sold in east Asia, the Middle East, Africa and the Americas. It is also planning to enter the east European countries.
During the fiscal 2016, ADL targets revenues of Rs 135 crore, compared to Rs 93.5 crore in FY15 and Rs 76 crorein FY14.
The company has an employee strength of 400, of which 200 are in operations and the remaining in sales and marketing.
Chennai-based investment bankers Veda Corporate Advisors had advised ADL on the deal.