• South Asia
Geographic location where the impacts of the investment may be experienced.
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Maharashtra- Pune,Mahad, Taloja; Gujarat-Panoli; Karnataka-Jigani
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
  • Education and Health
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 9, 2022

Disclosed by Bank Nov 16, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC documents, IFC is proposing an investment up to $50 million in Hikal for a multi-year CAPEX program entailing several projects (the “Project”). The CAPEX plan proposals are spread across various business segments and production facilities to be implemented over the next 2-3 years as follows; i) pharmaceuticals (capacity expansion of existing products, expansion of manufacturing facilities for human health APIs and for animal health APIs at the Jigani facility); ii) crop protection (capacity expansion for existing products, expansion of the manufacturing facility at Mahad); iii) expansion of the R&D facility in Pune (pilot plant, laboratory and kilo laboratory; and iv) effluent treatment plant, solvent recovery unit and utility upgradation (e.g., at facilities where Zero Liquid Discharge system is not yet installed as described in the PS3 section below.)

At the pharmaceutical manufacturing facilities, Hikal has an API product pipeline across therapeutic areas related to diabetes, anti-thrombotics, hypertension, anti-inflammation and analgesic for human health. At crop protection manufacturing facilities, the product range of active ingredients and intermediates includes algaecides, insecticides, fungicides, biocides and others.

This is IFC’s third investment in Hikal. IFC made two direct investments in Hikal in July 2008 and March 2013 previously which are no longer active.

 The Project will be located at the Company’s existing manufacturing facilities in India including in Mahad (Maharashtra), Taloja (Maharashtra), Panoli (Gujarat), Jigani (Karnataka) and Pune (Maharashtra). 

Environmental and Social Categorization

This is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy. Key E&S risks and impacts include: ii) the Company’s E&S management system (ESMS) including organizational capacity so as to effectively manage operations in aligned with the Performance Standards, national requirements and good international industry practice (GIIP; ii) fair, safe and healthy working conditions including occupational health and safety (OHS) and COVID infection control aligned with local regulatory requirements and current good manufacturing practices (cGMPs) as applicable to the pharmaceutical and pesticide sector; iii) pollution prevention including emission and discharge of volatile organic compounds and other gaseous compounds; iv) compliance with local and international regulatory requirements for hazardous chemicals and material use aligned with GIIP; v) management of risks and impacts on communities associated with storage and transport of hazardous materials; vi) life and fire safety and onsite and & off-site emergency preparedness systems; and 7) cumulative impacts.

It may be noted that in January 2022 and subsequent to the original disclosure of this Environmental and Social Review Summary (ESRS) document, as per several media reports, IFC understands that 6 people died and 23 were hospitalized in the city of Surat, state of Gujarat in India, due to exposure to certain toxic fumes. Hikal has since clarified that the tanker involved in transporting the material in question was not the same tanker that left the company’s premises. IFC understands that this matter is under investigation and this ESRS may be further updated once the Company updates all stakeholders on the status. Meanwhile, in line with the requirements of the IFC Performance Standards, an Environmental and Social Action Plan (ESAP) has been updated and agreed upon as enclosed.

Overview of IFC's Scope of Review

IFC's environmental and social (E&S) review included a virtual assessment in October 2021 and involved; i) discussions with Hikal’s senior management to discuss the Company’s environmental, health and safety (EHS) and social management capacity and performance in relation to the requirements of IFC's Performance Standards (PS) and the World Bank Group (WBG) EHS Guidelines (i.e., General; Pharmaceuticals and Biotechnology Manufacturing; Pesticides Formulation, Manufacturing and Packaging); ii) and review of E&S related documentation and information provided by the Company based on IFCs E&S appraisal questionnaire. The E&S performance of the previous investments in the Company was satisfactory.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IFC proposes to fund up to US$50 million to part finance the Company’s multi-year capital expenditure plan.

Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Mr. Jai Hiremath and family with related entities hold 69% stake are the promoter shareholders. The Company is publicly listed in India and the balance is held by financial institutional investors and general public.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Established in 1988, Hikal Limited (“Hikal” or the “Company” - https://www.hikal.com/) undertakes custom manufacturing of key intermediates and Active Pharmaceutical Ingredients (“APIs”) for pharmaceuticals, animal health as well as crop protection companies globally. Hikal has six manufacturing facilities in India including two pharmaceutical facilities in Jigani (State of Karnataka), one pharmaceutical facility and one crop protection facility in Panoli (State of Gujarat), one crop protection facility in Mahad (State of Maharashtra), one crop protection fatuity in Taloja (Stete of Maharashtra). In addition, there is a research and development (R&D) facility in Pune (State of Maharashtra).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - HIKAL III Client Industry and Trade

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Hikal Limited
Mr. Kuldeep Jain
Chief Financial Officer
+91 (22) 3097 3100
Great Eastern Chambers, 6th Floor, Sector 11, CBD Belapur, Navi Mumbai – 400 614, ; India


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The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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