IFC invests $15million in India's Hikal
This article was originally published in Scrip
Executive Summary
The International Finance Corporation (IFC), a member of the World Bank group, is investing $15 million in India'sHikal by way of equity participation. Hikal plans to issue up to 1.36 million equity shares of Rs10 each on a preferential basis to IFC, the company informed the Bombay Stock Exchange. The investment will part-finance Hikal's expansion plans at its existing sites in Jigani (near Bangalore), Panoli (Gujarat) and Taloja (near Mumbai). IFC believes that by supporting Hikal, a mid-tier player in contract research and manufacturing services, it will assist in the evolution and development of an emerging industry with long-term growth prospects and strong employment potential in India. Besides by supporting process innovation in emerging markets, IFC expects Hikal to further transform itself from competing on cost to competing on process capabilities.,