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| Dishman India |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27580 |
| Company name | Dishman Pharmaceuticals and Chemicals Ltd |
| Country | India |
| Sector | Chemicals |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | October 24, 2008 |
| Projected board date | November 24, 2008 |
| Previous Events | Invested: July 17, 2009
Signed: April 6, 2009
Approved: March 28, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Dishman Pharmaceuticals and Chemicals Limited (“Dishman” or the “Company”), incorporated in 1983, is one of the leading companies in India providing contract research and contract manufacturing services. Over the next three years, Dishman is undertaking an investment program (the “Project”) including the construction of new facilities at its existing manufacturing site in India, the establishment of a greenfield manufacturing facility in China and investments in overseas subsidiaries and joint ventures. |
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| Project sponsor and major shareholders of project company |
| The company is sponsored by the Ahmedabad (Gujarat) based Vyas family (the “Sponsors”). Mr. J. R. Vyas, a first generation technocrat and entrepreneur, is the founder of the company. As on June 30, 2008, the company’s shareholding was as follows: the Sponsors, 60.7%; Indian Mutual Funds, 18.4%; Foreign Institutional Investors, 11.8%; and Public, 9.2%. |
| Total project cost and amount and nature of IFC's investment |
| IFC’s proposed investment entails debt financing to help the company meet its growth plans in the medium term. |
| Location of project and description of site |
| The project involves the construction of new facilities at its existing manufacturing site in Bavla, India, the construction of a greenfield manufacturing facility in Shanghai, China, and additional investments in existing subsidiaries and joint ventures including Saudi Arabia. |
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| Anticipated development impact of the project |
The anticipated development impact of the project is as follows:
- south-south investment of an Indian company into China and transfer of knowhow for USFDS-approvable standards;
- lower the overall costs of medicines R&D and manufacturing for customers thus facilitating a more affordable end price of medicines for consumers;
- technology transfer to Dishman from its global pharmaceutical market clients and from Dishman of its knowhow in API manufacturing to its joint-venture partners; and
- a demonstration effect for others in the sector through Dishman’s commitment to intellectual property rights and adherence to Indian environmental performance and labor standards. |
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| IFC's expected development contribution |
IFC’s expected development contributions would be:
- to have a countercyclical role by providing long-term financing not otherwise available in the local market to a medium-tier corporate in India;
- sharing IFC’s global Life Science sector knowledge and expertise with the Dishman Group;
- ensuring compliance with international environmental and social standards; and
- building a long-term partnership with the Dishman Group to support its next stage of growth. |
| Environmental and social issues - Category B |
This is a Category B project, according to IFC’s environmental and social review procedure. Potential environmental and social issues associated with this project include:
- Consistent application of quality, health, safety, environmental and social systems across the growing operations
- Development of corporate human resources policies across the growing operations, especially an employee complaints policy and procedure
- Environment, social, health and safety assessments of new activities, especially new construction activities and design changes to existing plants
- Land acquisition for any new activities.
- While all Performance Standards (PS) are applicable to this investment, the E&S review of project information indicates that the investment will have impacts that must be managed in a manner consistent with:
- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement
Additional information on the above can be found in the Environmental and Social Review Summary. |
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| For inquiries about the project, contact: |
Mr. Deepak Pandya, Company Secretary and Head (Legal)
Dishman Pharmaceuticals and Chemicals Limited, Bhadr-Raj Chambers,
Swastik Cross Roads, Navrangapura,
Ahmedabad – 380009, India
Telephone: +91 (0) 79 2644 3053/ +91 (0) 79 2644 5807
Fax: +91 (0) 79 2642 098
Email: Deepak@dishmangroup.com
Website: http://www.dishmangroup.com/ |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Environmental documentation will be made available at the following locations:
Ahmedabad
Contact Person: Mr. Deepak Pandya, Company Secretary and Head (Legal)
Address: Dishman Pharmaceuticals and Chemicals Limited, Bhadr-Raj Chambers,
Swastik Cross Roads, Navrangapura,, Ahmedabad – 380009, India
Telephone: +91 (0) 79 2644 3053/ +91 (0) 79 2644 5807
Fax: +91 (0) 79 2642 098
Email: Deepak@dishmangroup.com
Bavla Site
Contact Person: Mr V C Vishnoi – Vice President (Safety, Health & Environment)
Address: Survey No: 47, Paiki sub-plot-1, Village-Lodariyal,
Taluka-Sanand, District. Ahmedabad
Phone Number:+ 91 (0) 2717 287 192 / 3/ 4
Fax Numbers: + 91 (0) 2717 287 195
Email: vishnoi@dishmangroup.com
China
Contact Person: Tracy Tsui
Address: Dishman Pharmaceutical & Chemicals (Shanghai) Co., Ltd.,
69# Shungong Road, Shanghai Chemical & Industrial Park,
Shanghai, China
Tel: +86 (0) 21 67121166 – 15
Fax: +86 (0) 21 67120811
Email: ttsuidc@dishman.net.cn |
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