<article><a style="color: #000080;" href="http://dealstreetasia.com/tag/ifc" target="_blank">International Finance Corp</a>, the private investment arm of the <a style="color: #000080;" href="http://dealstreetasia.com/tag/world-bank" target="_blank">World Bank Group</a>, plans to invest up to $47.5 million in Hyderabad-based pharmaceutical company <a style="color: #000080;" href="http://dealstreetasia.com/tag/granules-india" target="_blank">Granules India Ltd</a>.</article>

<a style="color: #000080;" href="http://dealstreetasia.com/tag/ifc" target="_blank">International Finance Corp</a>, the private investment arm of the <a style="color: #000080;" href="http://dealstreetasia.com/tag/world-bank" target="_blank">World Bank Group</a>, plans to invest up to $47.5 million in Hyderabad-based pharmaceutical company <a style="color: #000080;" href="http://dealstreetasia.com/tag/granules-india" target="_blank">Granules India Ltd</a>.
This latest investment will be used by the company to set up new facility, expand its existing capacities; investing in other general capital expenditure requirement at all existing facilities; and investing in R&amp;D to improve its product mix in favor of higher value-added products, IFC said in a disclosure.
&#8220;The Project will significantly demonstrate how domestic companies use their strong comparative advantages of low cost of production, scale, quality and regulatory compliance to exploit the opportunities that enable them to move up the pharmaceutical value chain in selling to more regulated markets. The Project will support the Company&#8217;s expansion enabling wider availability of high quality, low cost drugs in developed and developing markets,&#8221; it added.
Majority of the investment is in the form of capital expenditures in India  which is estimated to cost about $84 million. The capital expenditure will include building a greenfield API manufacturing facility in Vishakhapatnam, India apart from expanding its existing capacities.
&#8220;It is proposed to be financed with debt of $68.5 million including a corporate loan of up to $47.5 million for IFC’s own account, and the rest through equity and internal accruals,&#8221; IFC said.
This latest debt extended by IFC will be the fourth investment made by the organisation to Granules India after it first made a debt and equity investment in 2007, which it later exited in 2014.  In 2007, it had  acquired 11.48 per cent stake in Granules India for around Rs 26 crore.
Subsequently in 2009, IFC provided a Cleaner Production Lending Facility (CPLF) loan and a debt investment in 2011 for its Granules India capacity expansion of its Gagillapur facility.
Granules India manufactures tablets, Pharmaceutical Formulation Intermediates (PFIs) and active pharmaceutical ingredients (APIs) which are distributed in over 50 countries. It makes several off-patent drugs, including Paracetamol, Ibuprofen, Metformin and Guaifenesin, on a large scale for customers in the regulated and semi-regulated markets.
Granules has wholly-owned manufacturing plants near Hyderabad in India (Jeedimetla, Bonthapally, and Gagillapur) and in Vishakhapatnam in India along with a R&amp;D and manufacturing facility in Virginia, US.  Also, through its joint ventures, it has one plant in China and another manufacturing plant in Vishakhapatnam.
In July last year, Granules India, through its wholly-owned subsidiary Granules Pharmaceuticals Inc agreed to acquire 12.5 per cent stake in US-based drug maker <a style="color: #000080;" href="http://dealstreetasia.com/tag/uspharma" target="_blank">USpharma Inc</a>. for an undisclosed amount.
Recently, IFC also agreed to invest up to $15 million renewable energy company <a style="color: #000080;" href="http://dealstreetasia.com/tag/clean-max-enviro" target="_blank">Clean Max Enviro Energy Solutions</a>.
Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/granules-to-acquire-12-5-stake-in-us-based-drug-maker-uspharma-47452/" target="_blank">Granules India to acquire 12.5% stake in USpharma</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-ifc-plans-15m-investment-in-renewable-energy-firm-clean-max-enviro-64987/" target="_blank">India: IFC plans $15m investment in renewable energy firm Clean Max Enviro</a>

International Finance Corp, the private investment arm of the World Bank Group, plans to invest up to $47.5 million in Hyderabad-based Granules India Ltd.

Exclusive: IFC to invest $47.5m debt in Granules India

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Exclusive: IFC to invest $47.5m debt in Granules India

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