The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved FDI proposal for foreign investment of up to Rs. 9,589 crore in Suven Pharmaceuticals Limited by Berhyanda Limited, Cyprus.

The approval is for acquisition of up to 76.1% equity shares of Suven Pharmaceuticals Limited, a public limited Indian pharmaceutical company listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, by Berhyanda Limited, Cyprus, by way of transfer of shares of from existing promoter shareholders and public shareholders through mandatory open offer. The aggregate foreign investment may increase up to 90.1% in Suven Pharmaceuticals Limited.

The proposal has been evaluated by SEBI, RBI, CCI, and other relevant agencies. The approval has been granted after examination of the proposal by Departments concerned, RBI and SEBI and is subject to the fulfillment of all rules and regulations as applicable in this regard.

The entire investments in foreign Investor company Berhyanda Limited are held by Advent Funds, which pool investments from various Limited Partners (LPs). The Advent Funds are managed by Advent International Corporation, an entity incorporated in the USA. Advent International Corporation, set up in 1984 has made investments of about US $75 billion in 42 countries. Advent India started investments in India in 2007 and so far it has invested about Rs. 34,000 crores in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.

The approved investment aims to generate new jobs, capacity expansion of the Indian company through investments in plant and equipment. Association with Advent Group is expected to provide a larger platform to Suven Pharmaceuticals Limited by expanding business operations; achieving operational excellence; enhancing productivity and accelerating growth; improving the environment, health and safety standards of Indian companies; and bringing in global best practices in management as well as excellent training opportunities to existing professionals.

The government has put in place an investor-friendly Foreign Direct Investment (FDI) Policy regime for the pharmaceutical sector in order to bring in global best practices through technology, innovation, and skilling for accelerated economic growth and development; supplement capital for scaling domestic productivity, increase competitiveness, and employment generation amongst other benefits.