International Finance Corporation (IFC) plans to invest $15 million to support expansion project of Hyderabad-based public listed firm Vivimed Labs Limited, a manufacturer and exporter of specialty chemicals (for personal care and industrial segments) and pharmaceutical products.
The project entails expansion in existing sites in Bidar (Karnataka), Bonthapally (Andhra Pradesh) besides greenfield projects in Choutuppal (Andhra Pradesh) and in an SEZ in Srikakulam (Andhra Pradesh). The total investment envisaged for the project is pegged at about $42 million of which IFC proposes an investment of up to $15 million to part finance this capital expenditure plan.
Vivimed operates through two divisions: H&PC Actives Division that includes its synthetic organic chemistry products catering to oral care, sun care, skin care, hair care and preservatives besides the Specialty Pharma Division that is into drug delivery and drug discovery focused on providing cures oncology, arthritis, Syndrome X, macular degeneration, psoriasis and stress.
Over the last three years it has struck two overseas acquisitions including UK-based James Robinson Ltd, that is into dyes used in a host of personal care and consumer products ranging from hair dye intermediates and photographic developer chemicals to ophthalmic lenses and fluorescent dyes for textiles, inks and coatings. It also acquired US-based Harmet International to strengthen its base in the American market.
For the year ended March’10 Vivimed had consolidated revenues of Rs 350 crore with net profit of Rs 31 crore.
This marks the 11th proposed investment by IFC in India since January 1, 2011, with total committed capital (equity + debt) of $ 345 million. The private sector investment arm of the World Bank has been one of the most prolific and consistent investors in Indian companies over the past few years.
Early this month it announced investment of $30 million through a mix of equity and debt in Karnal-headquartered Dunar Foods that is in the business of procurement, processing and supply of basmati rice. It has also struck a deal for a proposed investment of $10-$15 million in Aavishkaar India II Company Ltd (a successor fund to Aavishkaar India Micro Venture Capital Fund) that would have a corpus of $100-$150 million and would focus on financing early-stage venture enterprises that target fundamental market needs in rural and semi-urban India.
IFC has also proposed to invest in Gujarat-based SEWA Bank, microfinance institution Bandhan, education-focused private equity fund Kaizen, Simran Power Projects Ltd, Shalivahana Green Energy Ltd, PTC India Financial Services Ltd, Exim Bank and a just-announced $30 million loan to Kalyani Gerdau Steels Ltd – a joint venture between the Gerdau Group (Gerdau), a leading Brazilian steel producer, and the Kalyani Group.