NEW DELHI, INDIA (8 December 2021) — The Asian Development Bank (ADB) has signed an agreement to take a stake in Zenex Animal Health India Private Limited (Zenex) with an investment of up to $10 million, to increase Zenex’s production and distribution of quality animal health care products and help boost farmer incomes by mitigating livestock disease risk. ADB and Zenex will also work together on containing antimicrobial resistance across India, Bangladesh, Nepal, and Sri Lanka.
“This investment by ADB will help to promote healthy and productive livestock in India and improve farmers’ incomes by enhancing their productivity,” said ADB Investment Specialist for Private Sector Operations Tushna Dora. “This is ADB’s first private sector venture in the emerging subsector of animal health. It reflects the importance of improving biosecurity, controlling antimicrobial resistance, and preventing zoonotic diseases as economies begin to recover from the impacts of the pandemic.”
ADB will support Zenex’s investments in working capital, maintenance expenditure, and research and development of new products. Quality health care products will help smallholder farmers control livestock diseases and increase productivity, thereby improving their incomes.
ADB will also provide a $575,000 technical assistance (TA) grant to support Zenex’s training of 2,300 farmers and 580 veterinarians in Bangladesh, India, Nepal, and Sri Lanka to tackle the major public health issue of antimicrobial resistance. The TA will focus on antibiotic management, alternatives to using antibiotics, and best practices in biosecurity. At least 40% of target participants will be women.
Zenex is India’s second-largest animal health company and has a diversified product portfolio. The company produces farm-care products, feed supplements, vaccines, and therapeutic products largely for cattle, buffalo, and poultry.
ADB’s investment in Zenex is a co-investment along with Multiples Private Equity Fund III (Multiples) and other investors in Zenex. ADB is an existing limited partner in Multiples, who holds a significant stake in Zenex. A Multiples-led consortium bought out the animal health business from Cadila Healthcare Limited in July 2021, and formed Zenex.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.