Frontier market-focused private equity firm TLG Capital has increased its investment in Uganda-based pharmaceutical manufacturer Quality Chemicals Industries (QCIL) to a 12.5 per cent shareholding.
The deal brings TLG’s total investment into Ugandan businesses to nearly $10m.
QCIL manufactures and sells drugs that combat HIV/AIDS and malaria, which are the two biggest disease crises that Africa faces today.
CEO of QCIL, Emmanuel Katongole said, “We are delighted to have TLG Capital continuing to support the company as it reaches the next stage of its evolution.”
In this next stage of growth, QCIL is aiming to triple production from the current level of up to 6 million tablets a day to 18 million tablets within the next one to two years.
The increased production costs should be funded primarily through the company’s existing cash flows.
“We are impressed by the management team’s ability to execute on the growth and expansion strategy much earlier than expected and are confident that QCIL will continue to build upon this success, including their plans for increased production capacity,” COO of TLG Capital, Afsane Jetha said.
TLG was the first international private equity investor in QCIL. The firm also invested in Uganda-based Vero Food Industries last year.
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