Granules India to get Rs 318 crore from IFC to set up new plant in Vishakhapatnam

International Finance Corporation (IFC), an arm of world Band is planning to invest 47.5 million dollars (Rs 318 crore) to Granules India Limited, an Indian pharmaceutical manufacturing company based in Hyderabad.

The investment fund will help the Granules India to set up a plant in Vishakhapatnam, expanding existing capacities and investing in R&D to improve its product mix in favour of higher value-added products. This will be the fourth investment made by IFC in Granules India.

The total cost of the project is estimated to be 84 million dollars, of which International Finance Corp (IFC) will invest 47.5 million dollars and the remaining will come through through equity and internal accruals.

Granules has factories near Hyderabad and Vishakhapatnam, along with an R&D and manufacturing facility in Virginia, US. The company, through its joint ventures, also has one plant in China and another plant in Vishakhapatnam.

The Company manufactures tablets, Pharmaceutical Formulation Intermediates (PFIs) and active pharmaceutical ingredients (APIs) which are distributed in over 50 countries.

Earlier in 2007, IFC had made an equity investment of Rs 24.3 crore in Granules, Reports VCCircle.

IFC has an active direct private equity-style investment practice in India. It also lends to firms and has an active limited partner, or LP, portfolio in India where it backs Private equity (PE) and Venture capital (VC) funds.

Except Granules India, IFC has invested in Glenmark Pharmaceuticals, Jubilant Pharma and Vivimed Labs, among others.