Advent to provide larger platform for expanding Suven business operations
The Cabinet Committee on Economic Affairs has approved a Rs.9,589 crore FDI proposal in Mumbai-listed Suven Pharmaceuticals Limited by Berhyanda Limited, Cyprus, which is managed by Advent International Corporation, an entity incorporated in USA.
The approval is for acquisition of up to 76.1% equity shares of Suven Pharmaceuticals by Berhyanda by way of transfer of shares of from existing promoter shareholders and public shareholders through mandatory Open Offer. The aggregate foreign investment may increase up to 90.1% in Suven Pharmaceuticals.
The proposal has been evaluated by SEBI, RBI, CCI and other relevant agencies. The approval has been granted after examination of the proposal by Departments concerned, RBI and SEBI and is subject to the fulfillment of all rules and regulations as applicable in this regard.
The entire investments in foreign Investor company Berhyanda are held by Advent Funds, which pool investments from various Limited Partners (LPs), and is part of Advent International Corporation has made investments of about US$75 billion in 42 countries since 1984.
Advent India started investments in India since 2007 and, so far, it has invested about Rs.34,000 crores in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.
The approved investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant and equipment.
Association with Advent Group is expected to provide larger platform to Suven Pharmaceuticals by expanding business operations; achieving operational excellence; enhancing productivity and accelerate growth; improve the environment, health and safety standards of Indian Company; and bring in global best practices in management as well as excellent training opportunities to existing professionals.
The Government has put in place an investor-friendly Foreign Direct Investment (FDI) Policy regime for pharmaceutical sector in order to bring in global best practices through technology, innovation and skilling for accelerated economic growth and development; supplement capital for up scaling domestic productivity, increase competitiveness and employment generation amongst other benefits.
As per the extant FDI Policy, 100% foreign investment is allowed under automatic route in greenfield pharmaceutical projects. In brownfield pharmaceutical projects, FDI upto 74% are allowed under the automatic route and Government approval is required for investment beyond 74%.
Total FDI inflows in pharmaceutical sector has been Rs.43,713 crore during last five years (from 2018-19 to 2022-23). The sector has witnessed significant growth in FDI of 58% in the last financial year. fiinews.com
