Jun 18, 2007, 06.17 PM | Source: Moneycontrol.com
IFC Financing to Support Growth of Indian Pharmaceutical Firm, Granules India Ltd. Investment to the tune of over 60 crores (USD 15 billion) split in loan and equity
IFC , the private sector arm of the World Bank Group , today announced an agreement to provide financing for Granules India Limited , a decision that will help the company strengthen its financial position and expand its existing business, helping more people across the income spectrum to access the medicines they need.
The company will use the $15 million investment—loans of up to $9 million and up to $6 million in equity—to expand its active pharmaceutical ingredient and granulation capacities, while vertically integrating into finished formulations. At project completion, Granules will have added significant scale capacities for its target markets, which will enhance the company’s competitiveness.
“We feel that this relationship gives us a wider horizon to explore possibilities for innovative financing,” said Krishna Prasad, Managing Director of Granules. “We were very impressed with IFC’s thorough due diligence on our financial and environmental policies. We see IFC support as an endorsement of our emphasis on world-class infrastructure and global vision,” he added.
Dimitris Tsitsiragos, IFC Director of Global Manufacturing and Services, commented, “Our investment will provide financing to Granules over a longer-term horizon, essential for the company’s growth strategy. We believe that the company has put together a capable management team to harness the market opportunities.”
“Our investment in Granules is another example of IFC’s continued focus on supporting mid-tier Indian companies with long-term debt and equity investment,” noted Sujoy Bose, IFC Senior Manager for South Asia. “Through this project, IFC will help Granules build on its economies of scale, vertical integration, and regulatory experience and move up the value chain into finished formulation manufacturing,” he added.
Sourced From :Integral PR Services Pvt. Ltd