New Delhi, India, June 14, 2007 – 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
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
“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
“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.
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable private
sector companies and other partners in generating productive jobs and delivering
basic services, so that people have opportunities to escape poverty and
improve their lives. Through FY06, IFC Financial Products have committed
more than $56 billion in funding for private sector investments and mobilized
an additional $25 billion in syndications for 3,531 companies in 140 developing
countries. IFC Advisory Services and donor partners have provided more
than $1 billion in program support to build small enterprises, to accelerate
private participation in infrastructure, to improve the business enabling
environment, to increase access to finance, and to strengthen environmental
and social sustainability. For more information, please visit www.ifc.org.
IFC in India
IFC’s $1.3 billion portfolio in India (as of June 2006) makes it our fourth-largest
country exposure. In FY06, we committed over $400 million in new investments
in the country. Our cumulative project commitments in the country since
1956 total $3.3 billion. We support private sector–led development through
direct investment and advisory services that promote growth and competitiveness.
Granules India Limited is a leading contract manufacturer of active pharmaceutical
ingredients and pharmaceutical formulation intermediates. The Hyderabad
based company is a major international supplier, primarily of paracetamol
and ibuprofen-based products. The manufacturing facilities of the
company have been approved by the United States Food and Drug Administration
and other foreign regulatory agencies.