Jubilant Life Sciences today said its subsidiary will receive $147.5 million (over Rs 860 crore) funding from IFC, a member of the World Bank Group, to strengthen its generic drug manufacturing facilities.
“IFC, a member of the World Bank Group, is lending $147.5 million to Jubilant Pharma Ltd to enable better access to quality and affordable pharmaceuticals in undeserved markets in India and across the world,” Jubilant Life Sciences said in a statement.
The loan will help Jubilant Life Sciences increase focus on the pharmaceutical sector and strengthen its generic drug manufacturing facilities in India, it added.
Jubilant Pharma, a wholly-owned subsidiary of Jubilant Life Sciences, is incorporated in Singapore, with manufacturing operations in India, the US, and Canada.
“We consider IFC a long-term partner with significant healthcare expertise across emerging markets. IFC’s contribution goes beyond financing. IFC will also help us strengthen our quality assurance and risk mitigation mechanisms and make the company systems more robust,” Jubilant Life Sciences CMD Shyam S Bhartia said.
IFC’s long-term financing package will consolidate the company’s entire pharmaceuticals business under Jubilant Pharma and build global competitiveness, he added.
“Health is a priority sector for IFC in India. There is an urgent need to expand access to affordable and quality healthcare, especially among low-income communities,” IFC Director – Manufacturing, Agribusiness and Services, Asia Pacific, Vipul Prakash.
This investment will contribute towards making the Indian pharmaceuticals sector globally competitive, and improve access to affordable medicines to a wider population, he added.
In a separate statement, the company said its consolidated net profit stood at Rs 98.81 crore for the fourth quarter ended March 31, 2014, against a net loss of Rs 30.97 crore in the corresponding period of previous fiscal.
Net sales of the company rose to Rs 1,551.62 crore for the fourth quarter, compared to Rs 1,380.18 crore in the same period of previous fiscal.
For the year ended March 31, 2014, the company posted a net profit of Rs 109.04 crore, as against Rs 152.73 crore in the previous fiscal.
The company’s board, which met today, recommended a dividend of Rs 3 per equity shares of Rs 1 fully paid up amounting to Rs 55.9 crore.
Jubilant Life Sciences shares today closed at Rs 186.05 apiece on the BSE, down 0.40 per cent from its previous close.