1 week Ago
Global investment giant TPG Group is set to expand its footprint in India’s pharmaceutical packaging industry with its affiliate, TPG Scion SG Pte Ltd, acquiring a stake in SCHOTT Poonawalla Private Limited (SPPL). The deal, which involves a secondary share purchase from Serum Institute of India Pvt Ltd, is currently under review by the Competition Commission of India (CCI) for regulatory approval. The proposed transaction, categorised under Section 5(d) of the Competition Act, 2002, involves an equity acquisition, marking a strategic entry of TPG into the growing pharmaceutical packaging sector.
TPG Scion, a special purpose investment vehicle incorporated in Singapore in October 2024, is backed by the TPG Group, a leading global investment firm with diversified holdings. Although TPG Scion currently has no operations in India, this move signals a targeted investment in the country’s expanding pharmaceutical ecosystem. SPPL, on the other hand, is a key player in the primary pharmaceutical packaging market, manufacturing sterile and non-sterile glass containers such as ampoules, vials, cartridges, and prefilled syringes.
These products are essential for the pharmaceutical and biotech industries, especially in the injectable drug segment. According to the submission to CCI, the parties believe that the deal will not raise competition concerns in the Indian market. The transaction has been assessed across multiple market segments, including: Broad Market: Packaging material for pharmaceutical products in India.
Narrow Market: Glass-based pharmaceutical packaging solutions. Segmented Markets: Glass vials, pre-fillable syringes, ampoules, and cartridges. Downstream Markets: Contract Development & Manufacturing (CDMO) and generic injectable production.
While TPG’s investment aligns with the growing demand for high-quality pharmaceutical packaging, industry experts suggest that the move could bolster innovation and enhance supply chain efficiencies in the sector. As India remains a major hub for vaccine and injectable drug manufacturing, investments in pharmaceutical packaging have gained momentum. The proposed acquisition aligns with global trends where private equity players are increasing their stake in pharmaceutical supply chains.
The transaction is now pending CCI’s approval, which will assess its impact on competition before granting the nod. If approved, this investment could strengthen SPPL’s position in the Indian and global pharmaceutical packaging market, potentially leading to new innovations and expanded production capacities. With India’s pharmaceutical industry expected to grow exponentially, TPG’s foray into the segment could be a game-changer, paving the way for further global investments in the country’s medical packaging sector, industry observers said.
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