In New Delhi:
Minakshi Seth
Phone: +91 11 4111 1058
Email: mseth@ifc.org

In Washington, DC:
Carmen Powell
Phone: +1 (202) 473-4982
Email: cpowell@ifc.org

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 they need.

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 competitiveness.

“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 opportunities.”

“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.

About IFC
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.

About Granules
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.