The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has granted approval for foreign direct investment (FDI) in M/s Suven Pharmaceuticals Limited. The FDI proposal allows foreign investment of up to Rs. 9,589 crore by M/s Berhyanda Limited from Cyprus. This investment permits the acquisition of up to 76.1% equity shares of M/s Suven Pharmaceuticals Limited, a publicly listed Indian pharmaceutical company, through the transfer of shares from existing promoters and public shareholders via a mandatory Open Offer. There’s also potential for the aggregate foreign investment to increase to 90.1% in M/s Suven Pharmaceuticals Limited.
This proposal underwent evaluation by various agencies including SEBI, RBI, and CCI. The approval is contingent on compliance with all relevant rules and regulations.
M/s Berhyanda Limited, the foreign investor, is entirely owned by Advent Funds, which gather investments from Limited Partners (LPs). Advent Funds are managed by Advent International Corporation, a U.S.-based entity with a substantial global investment portfolio.
The approved investment aims to create jobs, expand the capacity of the Indian company through investments in plant and equipment, and enhance its operational efficiency. The partnership with Advent Group is expected to provide a broader platform for M/s Suven Pharmaceuticals Limited, fostering business expansion, operational excellence, increased productivity, and adherence to global management best practices. It will also offer training opportunities to professionals and elevate environmental, health, and safety standards.
The Government has established an investor-friendly FDI policy for the pharmaceutical sector, designed to introduce global best practices, technology, innovation, and skills development to accelerate economic growth. This policy aims to supplement capital for improving domestic productivity, enhancing competitiveness, and generating employment.
Under the existing FDI policy, 100% foreign investment is permitted through the automatic route for greenfield pharmaceutical projects. For brownfield pharmaceutical projects, FDI up to 74% is allowed automatically, while government approval is required for investments exceeding 74%. Over the last five years (2018-19 to 2022-23), the pharmaceutical sector has witnessed significant FDI inflows totaling Rs. 43,713 crore, with a notable 58% growth in the last financial year.