25-07-2025
Animal spirits: Zenex investors dial bankers for $1 billion sale or IPO
Owners of Zenex Animal Health are exploring a stake sale that could value the veterinary drug maker at over $1 billion, three people aware of the plan said. Investors including Multiples Alternatives, late Rakesh Jhunjhunwala's Rare Enterprises, Canadian pension firm CPPIB and IFC are looking at either an outright sale of Zenex or a public listing, the people said on the condition of anonymity.
The company's management and investors invited bankers late last month to prepare an exit plan through a sale or listing, the people said on the condition of anonymity. The consortium had acquired the maker of livestock, poultry and pet medicines from pharma major Zydus Cadila for ₹2,921 crore in 2021.
Sharp growth
'An investment banker is likely to be appointed soon, after which the process will kickstart by next month," one of the three people said, adding the company has grown multifold in the last four years.
Queries emailed to the spokespersons of Multiples and Zenex remained unanswered. A Rare Enterprises spokesperson did not respond to calls and IFC and CPPIB declined to comment.
The Zenex sale plan comes in the wake of Advent International recently buying a significant minority stake in Irish pet medicine maker Felix Pharma for $175 million, in what is seen as betting on fast-growing global market for generic pet medicines.
Sale or IPO
As per the second person cited above, Rare Enterprises specializes in taking companies public and helping them navigate the journey from private to public; and with CPPIB and IFC expected to stay invested for the long term, an IPO is a possible outcome. 'In which case, Multiples will sell as part of the offer for sale (OFS) in the IPO," he added.
Zenex's key segments are livestock business, poultry and exports. Therapeutics and farm care are part of the livestock segment. The company claims it has more than 250 brands and 100,000 vet and para-vet relationships, and sells across 45,000 retailers. It is associated with 14,000 dairy farms, 10,000 poultry farms and 5,000 stockists, the company website claims. Its peers include Virbac Animal Health India, Elanco India, MSD Animal Health India (part of Merck & Co.), Zoetis India Ltd, Ceva Polchem, Cargill India and Boehringer Ingelheim India.
'The company has global ambitions and can be an ideal candidate for either a buyout fund betting on the segment, or a strategic investor looking at a wide portfolio in the animal pharma segment," the third person cited above said. The India veterinary medicine market size was estimated at $1.73 billion in 2024 and is projected to reach $4.17 billion by 2033, growing at a CAGR of 10.23% from 2025 to 2033.
Price, volume growth
Zenex posted revenue of ₹823.6 crore in FY24, up from ₹753.8 crore a year earlier, according to market intelligence provider Tracxn. Its profit decreased to ₹14.9 crore from ₹19.3 crore in the same period. Earlier in March, it completed acquisition of Ayurvet, an Ayurvedic pet pharma company to help it unlock new growth drivers.
As per an October 2023 ratings release by India Ratings, Zenex has been able to drive price and volume growth across its key segments, aided by strong execution capabilities, key brands and healthy supply chain, mitigating future competition risks. 'It is among the largest companies in the therapeutic segment in terms of revenue, and among the top five companies in the farm care segment in India," the release said.
'The market is experiencing growth due to rising awareness about the importance of animal healthcare, a growing number of animal disease outbreaks, and increasing demand for animal-derived protein. Additionally, new product launches, advancements in veterinary medicine, and strong regulatory support contribute to this growth," a 2023 research report by Grand View Research shows.
India's vast livestock population of over 536 million, the largest globally, combined with the heavy dependence of nearly 70% of rural households on animals for livelihood, food security, and income, creates a strong foundation for sustained demand in the veterinary medicine market. Government initiatives such as the National Animal Disease Control Programme (NADCP) significantly amplify this demand, it said.
