Vivimed is promoted by Dr. V Manohar Rao, Mr. Santosh Varalwar, Mr. Subhash Varalwar and Mr. Sandeep Varalwar (the “Sponsors”). The Sponsors have a combined shareholding of about 50.37% in the Company as on December 31, 2010. Vivimed is listed on both the National and Bombay Stock Exchanges and has a market capitalization of about $65 million as on April 14, 2011.

The total project cost is estimated at about $42 million. IFC proposes an investment of up to $20 million to part finance this capital expenditure plan.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

The Company is based in Hyderabad and the projects include expansions in existing sites in Bidar, Karnataka; Bonthapally, Andhra Pradesh and greenfield projects in Choutuppal , Andhra Pradesh and in an SEZ in Srikakulam, Andhra Pradesh.

Setting up of environment friendly world class facilities compliant with International Regulatory Standards The new facilities are expected to create nearly 1,700 new jobs (including direct and indirect employment) Potential linkages with local suppliers, upgrade of existing infrastructure, indirect employment creation through auxiliary business in the region

Long term financing: Vivimed is on a growth track and long term financing is essential to support its capital expenditure plans Global Partnership: The Company has plans to expand its offering in the future and values IFC’s relationship that can not only provide access to capital but also guidance for future expansions. Resource efficiency: The complex being set up at the SEZ will be built to maximize resource efficiency through methods like solvent recovery and waste heat recovery.

This is a Category B project under IFC’s Policy on Social and Environmental Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized good international industry practices, guidelines or design criteria
Specific key environment, social, health and safety issues reviewed include:
Corporate capacity, staffing and management system in place to undertake the projects and operations in a manner consistent with IFC Performance Standards;
Assessment of health, safety and environmental impacts of new projects;
Land acquisition process;
Working conditions for employees and contract workers during both construction and operation of the plants;
Occupational health and safety;
Energy efficiency and water use;
Wastewater reduction, treatment and disposal, in particular discharge to marine environment at Srikakulam;
Air emission control and monitoring;
Management of hazardous materials and hazardous wastes; and

Management of community health, safety and security risks and impacts during construction and during operations.