Zenex Animal Health India Private Limited (IFC-45256)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Voting Date
Jan 19, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ZENEX ANIMAL HEALTH INDIA PRIVATE LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Education and Health
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 16.14 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.
Project Cost (USD)
$ 52.50 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 26, 2022

Disclosed by Bank Dec 3, 2021

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 ADB documents,  the proposed IFC investment involves purchase of equity shares of Zenex Animal Health India Private Limited (“Zenex” or the “company”) for up to INR1,200 million (approximately equivalent to US$16 million) together with purchase of equity shares of Zenex by IFC Asset Management Company Emerging Asia Fund (EAF) for up to INR2,700 million (approximately equivalent to US$36.5 million) from Multiples Private Equity Fund III (“Multiples”). The aggregate IFC and EAF investment is for up to INR 3,900 million (approximately equivalent to US$52.5 million). A consortium of 3-4 other investors led by Multiples have invested in “Zenex” to acquire the animal health business for markets in India and certain other countries from Zydus Animal Health and Investments Limited (“ZAHL”).

  • Zenex is involved in the manufacturing, marketing, and sale of animal health products for the livestock and poultry segment.
  • Project-level impact: The growth of the Company will increase the production of quality pharmaceuticals for livestock and poultry, resulting in better yields and increased income for farmers.
  • Market-level impact: The Project and Company’s growth will enable changes to existing markets that deliver sustainable development impact by promoting competitiveness through demonstration, replication, and competition.

ENVIRONMENTAL & SOCIAL REVIEW SUMMARY

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability (2012) because a limited number of specific E&S impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards and guidelines.

Key E&S risk and issues associated with this project include: (i) the existence and implementation effectiveness of E&S management systems, (ii) assurance of fair, safe and healthy working conditions; (iii) resource efficiency of the operations (energy and water); (iv) life and fire safety management, including emergency preparedness and response plan; (v) management of hazardous chemicals & materials; and (vi) waste management in compliance with local regulatory requirements and World Bank Group (WBG) EHS Guidelines for Pharmaceuticals and Biotechnology Manufacturing.

The company collaborates with research institutes and laboratories for clinical trial/testing and does not have any in-house vivarium.                                                

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

IFC’s proposed purchase of equity shares of Zenex is for up to INR1,200 million (approximately equivalent to US$16 million), together with IFC AMC Emerging Asia Fund (EAF)’s purchase of equity shares of Zenex for up to INR2,700 million (approximately equivalent to US$36.5 million). The aggregate IFC and EAF proposed investment is for up to INR 3,900 million (approximately equivalent to US$52.5 million).

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.

Zenex is held by a consortium of investors including Multiples, Canada Pension Plan Investment Board and Rare Equity Private Limited.      

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.

Zenex commenced its business with the acquisition of the animal health business of ZAHL, a wholly owned subsidiary of Cadila Healthcare Limited, which is focused on the development, marketing and sale of drugs, vaccines and feed supplements for livestock, poultry, companion, and other animals, for markets in India and certain other countries. This has been funded by equity from investors including Multiples and with debt.Zenex has a manufacturing facility in Haridwar, within the State Infrastructure & Industrial Development Corporation of Uttarakhand Limited (SIIDCUL) industrial area, which was earlier owned by ZAHL. This pharmaceutical formulation facility was commissioned in 2007 and has a monthly manufacturing capacity of 60000 liters per month (liquid injections), 156000 liters per month (liquid orals) and 15600 Kg tablets per month. The company does not have its own research and testing facility for product efficacy testing, but it collaborates with recognized national research institutes and laboratories for clinical trial/testing before launching the product.


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.

Zenex Animal Health India Private Limited
Vishal Shah
CFO
+91 96016 05074
VishalShah@Zenexah.com
9th Floor of N. G. Tower, Satellite Cross Roads, Ahmedabad 380015
www.Zenexah.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works