Cabinet Approves FDI of Rs.9589 crore in Suven Pharmaceuticals
New Delhi: The Cabinet approved the FDI proposal for foreign investment of up to Rs.9589 crore in Suven Pharmaceuticals Limited by Berhyanda Limited, Cyprus farm. The approval is for acquisition of up to 76.1% equity shares of Pharmaceuticals Limited, a public limited Indian pharmaceutical company listed on the National Stock Exchange of India and the Bombay Stock Exchange, by Berhyanda Limited. Cyprus,
Now the aggregate foreign investment may increase up to 90.1% in Suven Pharmaceuticals Limited. SEBI, RBI, CCI, and other relevant agencies reviewed the proposal. The clearance has been given following review of the proposal by the relevant departments, RBI, and SEBI, and is contingent upon adherence to all in this regard applicable rules and regulations.
Through investments in plant and equipment, the approved investment intends to create new jobs and increase the capacity of the Indian company. Association with Advent Group is anticipated to give Suven Pharmaceuticals Limited a bigger platform by extending business operations, achieving operational excellence, enhancing productivity, and accelerating growth.
It will also raise the company’s environmental, health, and safety standards in India and introduce best management practices from around the world as well as fantastic training opportunities for current employees.
In order to bring in global best practices through technology, innovation, and skill development for accelerated economic growth and development, the government has established an investor-friendly Foreign Direct Investment (FDI) Policy regime for the pharmaceutical sector. This will, among other things, supplement capital for up scaling domestic productivity, increase competitiveness, and create jobs.
According to the current FDI Policy, greenfield pharmaceutical projects are automatically eligible for 100% foreign investment. In brownfield pharmaceutical projects, FDI is permitted up to 74% automatically, and any investment above 74% requires government approval. The amount of FDI that has entered the pharmaceutical business overall over the last five years (from 2018-19 to 2022-23) is Rs. 43,713 crore. The last financial year saw a considerable increase in FDI of 58% for the sector.
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