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November 29, 2016 Vccircle

Exclusive: Somerset Health Capital invests in nutritional supplements firm

Somerset Health Capital Advisors Pvt. Ltd, a healthcare-focused private equity firm that is on the road to raise its second fund, has invested an undisclosed amount in a Mumbai-based nutritional supplements company, two persons close to the development told VCCircle.

The PE firm, which has been making investments from its $40 million Somerset Indus Healthcare Fund – 1, has struck the deal after a one-year gap.

The company in which it has made the investment was incorporated in 1991. It makes nutritional ingredients and mixes which can be prepared with food and beverages to boost minerals and vitamins. It caters to segments including pregnant women, infants, small children and convalescent patients.

Somerset—which is led by Avinash Kenkare, who previously worked with The Carlyle Group, and Mayur Sardesai—has invested in Mumbai-based nutritional supplement firm Hexagon Nutrition Pvt. Ltd, the two persons cited earlier said.

When contacted, the company acknowledged the investment but did not share details. It, however, added, “The fundraise will primarily be used to fuel growth of our brands in the domestic as well as export segment. We will also invest to augment the footprint of our micronutrient premix business and manufacturing capacity.”

A spokesperson for Somerset declined to comment on the transaction or on its second fund. A spokesperson for Veda Corporate Advisors, the banker for the transaction, also declined to comment.

On an average, Somerset invests around Rs 20 crore in each deal, but this transaction is believed to be larger, the first person said.

Hexagon posted sales of Rs 130 crore in FY2015-16, according to the second person.

It has three manufacturing plants and its brands include Pentasure, Obesigo and Pedia Gold.