Granules began operations in 1991 near Hyderabad, India. It is a public company that listed on the Bombay Stock Exchange in 2002 and the National Stock Exchange in 2005. As of April 30, 2007 the shareholding structure was:

- Mr. C. Krishna Prasad and Family 32.4%
- Ridgeback Capital Investments Ltd 14.78%
- Institutional Investors 13.03%
- others 39.79%

The project costs are estimated to be $32 million. The proposed IFC investment will be up to $15 million.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.0
Equity	6.0

* These investment figures are indicative

The key project sites are: Bonthapally and Gaigillapur in Hyderabad, India. Granules has existing plants located in industrial zones near the villages of Bonthapally and Gaigillapur, near Hyderabad. The sites are well connected by road to Hyderabad.

The project’s major development impacts include:

- promotion of knowledge transfer and technical skills development of the company and its staff resulting from an increased focus on the regulated pharmaceutical markets;
- setting higher standards for product quality and process efficiencies for the other local pharmaceutical companies;
- extension of the company’s expertise and know-how to its joint venture operation in China; and
- increasing access to high quality, affordable drugs in unregulated markets.

IFC’s expected development contributions are as follows:

- IFC will provide long-term capital to support the growth strategy of the company.
- IFC will also provide advice on environment, insurance, and corporate governance related measures to help align the company’s practices with international best practice standards.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects 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. The following potential environment, health and safety and social aspect of the project were analyzed:

- social and environmental assessment and environmental, social, and health and safety management systems;
- labor and working conditions; pollution prevention and abatement;
- community health, safety and security; and
- land acquisition and involuntary resettlement.

The review of this project consisted of appraising technical, environmental and social information submitted by the company including detailed questionnaires on the environmental and health and safety aspects of each of its facilities, including independent Environmental Impact Assessment (EIA) reports prepared for both the Bonthapally and the Jeedimetla industrial development areas. During project appraisal IFC visited all three of Granules’ production facilities (Bonthapally, Jeedimetla and Gaigilapur) in the Hyderabad area, and held discussions with Granules’ senior management team regarding the company’s human resource policies and procedures.