The cabinet committee on Economic Affairs chaired by Prime Minister Narendra Modi recently approved the Foreign Direct Investment (FDI) proposal of up to Rs 9,589 crore in Suven Pharmaceuticals Limited by Berhyanda Limited, Cyprus. The approval is for acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals Limited.
The investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant and equipment
The investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant and equipment. The association with Advent Group is expected to provide larger platform to Suven Pharmaceuticals Limited by expanding business operations, achieving operational excellence, enhancing productivity and accelerating growth, improving the environment, health and safety standards of the Indian compan, and bring in the global best practices in management as well as excellent training opportunities to the existing professionals.
The entire investments in the foreign investor company, Berhyanda Limited, are held by Advent Funds, which pool investments from various Limited Partners (LPs).
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 upscaling domestic productivity, increase competitiveness and employment generation, among other benefits.
As per the FDI Policy, 100 per cent foreign investment is allowed under automatic route in greenfield pharmaceutical projects. In brownfield pharmaceutical projects, FDI upto 74 per cent are allowed under the automatic route and government approval is required for investment beyond 74 per cent.
The proposal has been evaluated by the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), Competition Commission of India (CCI) and other relevant agencies.