Cipla, FIL Capital sign investment deal for consumer healthcare biz

Cipla on Saturday said it has inked an investment agreement with FIL Capital Investments (Mauritius) II Limited for its consumer healthcare business.

"Cipla Health Ltd and FIL Capital Investments (Mauritius) II Limited have on November 27, 2015 signed an investment agreement", Cipla said in a regulatory filing.

The investment is subject to approvals from the Foreign Investment Promotion Board and the Competition Commission of India, and the transfer of Cipla's consumer healthcare business to Cipla Health Ltd, it added. The company however did not disclose the financial details of the agreement.

In July, Cipla's board had approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II or its affiliates in its recently launched consumer healthcare business.

Through the consumer healthcare business, Cipla has entered the over-the-counter (OTC) healthcare market in India.

Earlier, the Mumbai-based company's board had approved divestment of its consumer healthcare business to Cipla Health, a wholly-owned subsidiary, by way of a slump sale for a consideration of Rs 10.5 crore.

The Indian Consumer Health Care (CHC) is a $4 billion (Rs ​26,680 crore) market and is growing at a CAGR of 15%. It is expected to be a $10 billion (Rs 66,700 crore) market by 2020.