The International Finance Corporation (IFC) is planning to invest around $15 million (Rs 69 crore) in Vivimed Labs Limited, a Hyderabad-based specialty chemicals and pharmaceutical company. The proposed investment is to part finance company's capital expenditure plan of $42 million (around Rs 193.2 crore).
Vivimed is listed on both the National and Bombay Stock Exchanges and has a market capitalisation of about $65 million as on April 14, 2011. It is promoted by V Manohar Rao, Santosh Varalwar, Subhash Varalwar and Sandeep Varalwar.
The company has lined up expansion at its existing sites in Bidar, Karnataka and Bonthapally in Andhra Pradesh. Besides, it has proposed greenfield projects at Choutuppal and in an SEZ in Srikakulam, Andhra Pradesh. The complex being set up in the SEZ will be built to maximise resource efficiency through methods like solvent recovery and waste heat recovery.
The new facilities are expected to create nearly 1,700 jobs both direct and indirect.
The corporation’s long term financing to Vivimed, which is on a growth track, is essential to support its capital expenditure plans, according to an IFC statement.