JLS is a part of the Jubilant Bhartia Group, which is a well known Indian conglomerate with diversified business interests in pharmacetuticals, life science ingredients, food, retail, oil and gas and trading activity. The group, promoted by Mr. Shyam Bhartia and Mr. Hari Bhartia (the Sponsors), operates in multiple locations globally and has over 30,000 employees. JLS is the Group’s vehicle for the life science ingredients and pharmaceutical businesses and holds 100% of the share capital of JPL. JLS’s operations are geographically diversified and its operating assets in India, United States of America and Canada. JLS, is listed in the Bombay and National Stock Exchanges in India and the Sponsors own approximately 54% of JLS’s shares.

Of the total outlay required for the Project and other growth initiatives over the next two to three years, IFC has been requested to provide part of the outlay and arrange a financing package of upto US$200 million, including for IFC’s own account (a) A loan of US$50 million and (b) a quasi-equity investment of US$60 million.

110.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	110.0
Equity

* These investment figures are indicative

Under the Project, JLS will consolidate its pharmaceutical business under JPL, which primarily involves a transfer of JLS’s Indian pharmaceutical assets to JPL.

1) Creation of better quality jobs: JLS employs 6,277 people globally, including 1,018 dedicated to R&D and in its pharmaceutical business; JPL employs more than 3,000 people, of which 50 percent are in India. The proposed investment will help maintain these jobs and create new ones, as JPL is able to launch new products, thanks to a stronger balance sheet.

2) Increased access to affordable quality healthcare: The Company''s strong product pipeline and R&D capability will enable better access to quality and affordable healthcare in the underserved markets, including India.

3) Demonstration effect: Through its financing, IFC will help a mid-sized company that has a solid business profile to strengthen its financial structure by lengthening the average maturity of its debt and minimizing its exposure to foreign exchange fluctuations. The proposed IFC financing will facilitate the corporate reorganization thereby enabling JPL to achieve sustainable growth.

4) Linkages: The Company has a number of local linkages both in its pharmaceuticals and LSI business segments. For example, on the LSI side, JLS has long-term contracts with local ethanol producers as well as purchases molasses from a number of sugar mills for its own distilleries. It also produces some ingredients that are used as agrochemicals with broad applications in agriculture.

1) Counter-cyclical role: IFC will be providing long term financing in a challenging environment, in particular to address the Company''s plan for its corporate reorganization. This corporate reorganization along with the IFC arranged financing would send a strong signal to the investor community, facilitating JLS to unlock the value of its pharmaceuticals business and grow in a more sustainable manner.

2) Catalytic role: IFC is expected to mobilize US$90 million in the form of parallel and "B" loans - including under the MCPP facility and other B/ Parallel lenders. This will enable JPL to broaden its financing sources, which today are mostly India based and having a broader base of financiers is critical for JPL to pursue its continued growth plans.

3) Long-term partnership and Industry knowledge: The Company values IFC as a long-term partner, including the industry expertise that IFC can provide. IFC''s financing is the first step in the relationship with the well-respected Jubilant Bhartia Group, which has diversified activities such as in food, retail and oil & gas sectors.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.



Key E&S risks and issues associated with this proposed investment include: development and implementation of environment, health and safety management systems both at corporate level and facilities level; engagement with local communities; assurance of fair, safe and healthy working conditions; resource efficiency of the operations (mainly water and energy); management and monitoring of organic solvent usage and emissions of volatile organic compounds, other gaseous compounds and particulates; monitoring and management wastewater treatment and discharge; hazardous material management; solid/hazardous waste management; life and fire safety management including on-site and off-site emergency preparedness and response; community safety; sources of raw materials and supply chain management and auditing.



No new assets are specifically being developed under the project. Consequently no new land acquisition is envisaged for any of the activities in the project and thus Performance Standard 5 (Land Acquisition and Involuntary Resettlement) is not applicable. Similarly, the type of risks and impacts envisaged in PS6 (Biodiversity Conservation and Sustainable Natural Resource Management), PS7 (Indigenous Peoples) and PS8 (Cultural Heritage) do not apply. Please refer to the project’s ESRS for further information.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.