The company is sponsored by the Ahmedabad (Gujarat) based Vyas family (the “Sponsors”). Mr. J. R. Vyas, a first generation technocrat and entrepreneur, is the founder of the company. As on June 30, 2008, the company’s shareholding was as follows: the Sponsors, 60.7%; Indian Mutual Funds, 18.4%; Foreign Institutional Investors, 11.8%; and Public, 9.2%.

IFC’s proposed investment entails debt financing to help the company meet its growth plans in the medium term.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The project involves the construction of new facilities at its existing manufacturing site in Bavla, India, the construction of a greenfield manufacturing facility in Shanghai, China, and additional investments in existing subsidiaries and joint ventures including Saudi Arabia.

The anticipated development impact of the project is as follows:

- south-south investment of an Indian company into China and transfer of knowhow for USFDS-approvable standards;
- lower the overall costs of medicines R&D and manufacturing for customers thus facilitating a more affordable end price of medicines for consumers;
- technology transfer to Dishman from its global pharmaceutical market clients and from Dishman of its knowhow in API manufacturing to its joint-venture partners; and
- a demonstration effect for others in the sector through Dishman’s commitment to intellectual property rights and adherence to Indian environmental performance and labor standards.

IFC’s expected development contributions would be:

- to have a countercyclical role by providing long-term financing not otherwise available in the local market to a medium-tier corporate in India;
- sharing IFC’s global Life Science sector knowledge and expertise with the Dishman Group;
- ensuring compliance with international environmental and social standards; and
- building a long-term partnership with the Dishman Group to support its next stage of growth.

This is a Category B project, according to IFC’s environmental and social review procedure. Potential environmental and social issues associated with this project include:

- Consistent application of quality, health, safety, environmental and social systems across the growing operations
- Development of corporate human resources policies across the growing operations, especially an employee complaints policy and procedure
- Environment, social, health and safety assessments of new activities, especially new construction activities and design changes to existing plants
- Land acquisition for any new activities.
- While all Performance Standards (PS) are applicable to this investment, the E&S review of project information indicates that the investment will have impacts that must be managed in a manner consistent with:

- PS1: Social and Environmental Assessment and Management Systems
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement

Additional information on the above can be found in the Environmental and Social Review Summary.