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Vivimed
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 30585
Country
India(IDA)
RegionSouth Asia
SectorPharmaceuticals and Medicine
Department
Company nameVivimed
Environmental category:B
StatusActive
Date ESRS disclosedApril 15, 2011
Previous EventsInvested: August 3, 2011
Signed: June 17, 2011
Approved: June 7, 2011
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation
Community/

Engagements
Client's

Documentation

Overview of IFC's scope of review
IFC’s review of this project consisted of site visits to the specialty chemicals plant in Bonthapally, the pharmaceutical plant in Jeedimetla and the R&D Centre at Mallapur all of them located in the Hyderabad area. A site visit was conducted to the already acquired land in Srikakulam, Andhra Pradesh, where the Special Economic Zone (SEZ) including the green-field plant will be built.

Documents reviewed include permits; licenses; monitoring records for air emissions, liquid effluents, ambient air, and workplace exposure; as well as E&S procedures, manuals, handbooks and programs for the existing operations. Documents regarding land acquisition and the prefeasibility report for the construction of the new manufacturing plant in Srikakulam were reviewed. At the time of this appraisal the Environmental Impact Assessment (EIA) reports for Srikakulam and Choutuppal have not been prepared as the Terms of Reference from the national and state governments (SEAC: State Environment Appraisal Committee) have not been issued.

Meetings were held with the corporate management team including Chief Executive Officer; Vice President for Quality Assurance, Health Safety and Environment and Regulatory Affairs; Operations Director; Production Manager; and Human Resources Manager.
Project description
Vivimed Labs Limited (Vivimed or the “Company”), based in Andhra Pradesh, India is a leading manufacturer and exporter of specialty chemicals (for personal care and industrial segments) and pharmaceutical products. Vivimed is listed on both National and Bombay Stock Exchanges. The Company plans to invest about $42 million for the following projects:

Setting up a specialty chemical and pharmaceutical facility in a Special Economic Zone in Srikakulam, Andhra Pradesh, India
Setting up a facility for pharmaceutical formulations in Choutuppal
Modernization and enhancement of its existing facility in Jeedimetla to meet US FDA and MHRA standards
Maintenance capital expenditure at its plants in Bidar and Bonthapally

The proposed IFC investment is to part finance this capital expenditure plan with a mixture of long term debt and foreign currency convertible bonds.

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