Homeowners of Zenex Animal Well being are exploring a stake sale that would worth the veterinary drug maker at over $1 billion, three folks conscious of the plan stated. Buyers together with Multiples Alternate options, late Rakesh Jhunjhunwala’s Uncommon Enterprises, Canadian pension agency CPPIB and IFC are both an outright sale of Zenex or a public itemizing, the folks stated on the situation of anonymity.
The corporate’s administration and traders invited bankers late final month to arrange an exit plan by a sale or itemizing, the folks stated on the situation of anonymity. The consortium had acquired the maker of livestock, poultry and pet medicines from pharma main Zydus Cadila for ₹2,921 crore in 2021.
Sharp development
“An funding banker is more likely to be appointed quickly, after which the method will kickstart by subsequent month,” one of many three folks stated, including the corporate has grown multifold within the final 4 years.
Queries emailed to the spokespersons of Multiples and Zenex remained unanswered. A Uncommon Enterprises spokesperson didn’t reply to calls and IFC and CPPIB declined to remark.
The Zenex sale plan comes within the wake of Introduction Worldwide not too long ago shopping for a major minority stake in Irish pet medication maker Felix Pharma for $175 million, in what’s seen as betting on fast-growing international marketplace for generic pet medicines.
Sale or IPO
As per the second particular person cited above, Uncommon Enterprises focuses on taking firms public and serving to them navigate the journey from personal to public; and with CPPIB and IFC anticipated to remain invested for the long run, an IPO is a attainable consequence. “Wherein case, Multiples will promote as a part of the provide on the market (OFS) within the IPO,” he added.
Zenex’s key segments are livestock enterprise, poultry and exports. Therapeutics and farm care are a part of the livestock section. The corporate claims it has greater than 250 manufacturers and 100,000 vet and para-vet relationships, and sells throughout 45,000 retailers. It’s related to 14,000 dairy farms, 10,000 poultry farms and 5,000 stockists, the corporate web site claims. Its friends embrace Virbac Animal Well being India, Elanco India, MSD Animal Well being India (a part of Merck & Co.), Zoetis India Ltd, Ceva Polchem, Cargill India and Boehringer Ingelheim India.
“The corporate has international ambitions and could be a super candidate for both a buyout fund betting on the section, or a strategic investor a large portfolio within the animal pharma section,” the third particular person cited above stated. The India veterinary medication market dimension was estimated at $1.73 billion in 2024 and is projected to achieve $4.17 billion by 2033, rising at a CAGR of 10.23% from 2025 to 2033.
Worth, quantity development
Zenex posted income of ₹823.6 crore in FY24, up from ₹753.8 crore a 12 months earlier, in response to market intelligence supplier Tracxn. Its revenue decreased to ₹14.9 crore from ₹19.3 crore in the identical interval. Earlier in March, it accomplished acquisition of Ayurvet, an Ayurvedic pet pharma firm to assist it unlock new development drivers.
As per an October 2023 rankings launch by India Rankings, Zenex has been in a position to drive worth and quantity development throughout its key segments, aided by sturdy execution capabilities, key manufacturers and wholesome provide chain, mitigating future competitors dangers. “It’s among the many largest firms within the therapeutic section by way of income, and among the many high 5 firms within the farm care section in India,” the discharge stated.
“The market is experiencing development because of rising consciousness concerning the significance of animal healthcare, a rising variety of animal illness outbreaks, and growing demand for animal-derived protein. Moreover, new product launches, developments in veterinary medication, and robust regulatory assist contribute to this development,” a 2023 analysis report by Grand View Analysis reveals.
India’s huge livestock inhabitants of over 536 million, the most important globally, mixed with the heavy dependence of almost 70% of rural households on animals for livelihood, meals safety, and revenue, creates a powerful basis for sustained demand within the veterinary medication market. Authorities initiatives such because the Nationwide Animal Illness Management Programme (NADCP) considerably amplify this demand, it stated.
Key Takeaways
- Zenex Animal Well being exploring over $1 billion sale or public itemizing.
Buyers Multiples, Uncommon, CPPIB, IFC contemplating exit from Zenex.
Bankers invited to arrange Zenex sale or itemizing plan subsequent month.
Zenex acquired from Zydus Cadila for ₹2,921 crore in 2021.
Indian vet medication market projected to achieve $4.17 billion by 2033.