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 March 31, 2011 the shareholding was as follows: Promoter Mr. C. Krishna Prasad and his Family - 40.57% ISP Investco LLC - 11.02% Ridgeback Capital Investments Ltd. - 10.87% IFC - 10.26% Others -27.28%

The project costs are estimated to be approximately $22 million. It is proposed to finance this with a corporate loan of up to $10 million for IFC’s own account, $10 million parallel loan and the remainder from internal cash generation.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

The project site is Gagillapur in Hyderabad, India. Granules has an existing plant located at the same site (an industrial zone near the village of Gagillapur). The site is well connected by road to Hyderabad.

- The Project will significantly demonstrate how domestic companies use their strong comparative advantages of low cost of production and scale to exploit the opportunities that enable them to move up the pharmaceutical value chain in selling to more regulated markets. - The Project will support the Company's expansion enabling wider availability of high quality, low cost drugs in developed and developing markets.

(i) Long tenor of IFC investment (ii) IFC's experience in the industry - including a large network of investments in the sector, helping the company improve environment, safety and quality standards and contribution in the areas of operations and strategy to support the company in a competitive market

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects.

Key environmental and social issues associated with this Project include: adequate social and environmental assessment of the impacts of the Project during both construction and operations; assurance of fair, safe and healthy working conditions during construction and operations; utilization of equipment and operational practices that maximizes conservation of energy, water and process materials including recycling and reuse initiatives; management of air emissions, wastewater treatment and discharge, and solid and other waste disposal; handling and management of hazardous materials and hazardous wastes; the impacts of operations on local ambient environment; and impacts on transport infrastructure during construction and operations.

Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the IFC Environmental & Social Review Summary.