US-based OTC and generic pharmaceutical maker Perrigo Company is investing Rs 130 crore in its local arm to raise its stake to 100 per cent by acquiring the stake held by its local partner besides fresh infusion of capital into the company.
NASDAQ-listed Perrigo Company established its manufacturing presence in India when it acquired 85 per cent stake in Mumbai-based Vedants Drugs and Fine Chemicals for $12 million in 2009. Vedants, which started in 2004, is promoted by Piyush Maheshwari, owner of Vedant Dyestuff and Intermediates.
The company since then has been rebranded and has been operating as Perrigo API India. With manufacturing capabilities of 450 MT per year, this site is a key supplier of active pharmaceutical ingredients (APIs) for Perrigo worldwide.
Perrigo also has a finished dosage form its consumer healthcare R&D site in India. This includes laboratory testing, supplier quality audits and global sourcing for the business units of Perrigo worldwide. Though this is a new facility, the centre was established in 2003.
The firm has received an approval from Foreign Investment Promotion Board (FIPB), the nodal body monitoring foreign investment in the country, to make the Indian arm a wholly owned subsidiary.
Perrigo API India is part of 20 proposals approved by government of India for FDI. According to a release by the government, the total FDI approval to these companies amounts to Rs 915.8 crore.
(Edited by Joby Puthuparampil Johnson)