Caplin Point's injectables unit to raise Rs 218 crore from two investors, says COO Siddharth

Caplin Point Laboratories has announced Rs 218 crore investment in its injectables subsidiary, Caplin Steriles, by Eight Roads Ventures, the investment arm of Fidelity International and its US-based sister fund, F-Prime Capital. Vivek Siddharth, COO of Caplin Point, spoke to CNBC-TV18 about the investment.

“In the last three years, we have spent about Rs 60-65 crore in to this plant on operational expenses and R&D and filing those in the US. Since we don’t have any debt on our books, we used to support this from our existing business around emerging markets. Now this is at a stage where we think that the US business, the regulator business can become a separate entity and try on its own. This also frees up a lot of our cashflow that we can use to deploy into other non-US kind of markets, non-US kind of technologies. So it works in both ways for us. On one hand, we don’t need to spend our money anymore on to that plant and on the other hand, whatever we save from here can be deployed into our other markets,” Siddharth said on Tuesday.

With regards to listing the entity in the market, Siddharth said, “It is difficult to comment on it right now but it remains a 75 percent subsidiary of Caplin Point. What happens four-five years down the line, it is a bit early to say right now but it could be one of the options.”