Private equity investor Advent International chooses Hyderabad as Cohance platform HQ

One of the world’s largest private equity investors, Advent International, has chosen Hyderabad as headquarters for its 'Cohance platform', with a cumulative investment of a whopping $2 billion (approximately Rs. 16650 crores).

'Cohance platform', encompasses Advent's API and contract development and manufacturing businesses — RA Chem Pharma, ZCL Chemicals, and Avra Laboratories.

Advent International in 2020 acquired a controlling stake in Hyderabad based RA Chem Pharma Limited, a vertically integrated pharmaceutical company from Micro Labs Limited.

Last year, Advent International, a private equity firm having investments over $75 billion in 410 companies across 42 countries had announced the launch of Cohance Lifesciences, a new brand identity for its API and CDMO platform.

Now, Advent is significantly amplifying its presence within Hyderabad's flourishing life sciences landscape with a Rs 9,589 crore investment to acquire a controlling stake in Suven Pharmaceuticals and to also establish a 50,000 sqft R&D lab in Genome Valley.

Advent’s investment and ambitious growth plans were discussed on Friday at a meeting between Advent International Managing Director, Pankaj Patwari, its operating partner Vaidheesh Annaswamy, and Telangana's IT and industries minister KT Rama Rao and state industries secretary, Jayesh Ranjan.

Earlier, Advent’s Managing Partner, John Maldonado had engaged in a meeting with KT Rama Rao, during the latter's visit to the US in 2022.

These pivotal investments mark a significant advancement in Hyderabad's trajectory as an emerging hub for pioneering life sciences innovation and its exponential growth.

With its current investment of $2 billion, which is largest of its kind in Asia, Advent is aspiring to be among the top three API and Contract Development and Manufacturing (CDMO) companies/platforms.

Commenting on the strategic partnership, KTR said, "I'm delighted to witness the remarkable growth of Advent International's portfolio in Hyderabad’s life sciences sector. Their journey of multiple investments and remarkable expansion in Telangana exemplifies the vibrant ecosystem that the government and industry partners have collaboratively nurtured. I am confident that Advent will continue to thrive in Telangana, and we will extend unwavering support to our industry partners in their growth endeavours."

Advent International, Managing Director Pankaj Patwari said, "Delighted to be able to announce Friday's investment in Hyderabad’s thriving life sciences landscape."

“This expansion reaffirms our commitment to driving innovation, growth, and value creation in partnership with the dynamic ecosystem of the region. We are looking at making additional investments to further strengthen the position of the Cohance platform,” Pankaj added.