Wednesday, 23. December 2009
DEG finances production of pharmaceutical substances in India
- 19 million US-dollars as a long-term loan for Ind-Swift Laboratories Ltd
- Capacity expansion and independent power generation
In emerging markets like India many people are still suffering
from diseases which could be prevented by better medical care. To
boost the production of affordable and high-quality drugs, DEG –
Deutsche Investitions- und Entwicklungsgesellschaft mbH, provides
the Indian company Ind-Swift Laboratories Ltd (Swift) with a
long-term loan of 19 million US-dollars. Swift uses the loan to
expand its capacities for the production of its most important
product, an active substance for antibiotics. Moreover, the company
builds a 7.5-megawatt biomass power station to secure its
independent energy supply.
Swift was founded in 1995 and is one of India’s biggest producers
of pharmaceutical substances. The substances are sold to big
national and international pharmaceutical companies, which produce
for both the Indian and export market. The company owns two modern
factories and a facility for research and development in the north
of India.
For the people in the region, the investment facilitates the access
to important drugs as costs for expensive imports of
pharmaceuticals can be reduced and India’s export economy
simultaneously be strengthened. Swift pays its staff above-average
wages and offers them a canteen and free-of-cost transport as well
as a comprehensive training programme. Employee shares are issued
to let the staff participate in the success of the company. The
construction of the biomass power station will not only cover the
company’s own energy demand but also feed electricity into the
public grid. This will contribute to a better energy supply of the
area. The power station is planned to be operated with rice
parings, which will be of benefit for the local rice farmers who
can thus sell their waste products.
DEG, one of Europe’s biggest development finance institutions, has
been active in India since 1964. The portfolio there is currently
at around 350 million euros for 36 project companies. The safe
access to pharmaceuticals in emerging markets and developing
countries is of special concern to DEG. This is why it already
enabled the modernisation of a pharmaceutical production in
Cameroon in March this year and granted the manufacturer of an
active substance for antimalarials in East Africa a quasi-equity
loan in 2008.
Attached please find a Pdf-File for downloading.
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