Ahmedabad, August 25, 2024

Zydus Lifesciences Limited (“Zydus”) through its wholly-owned subsidiary, and Perfect Day Inc., a Temasek portfolio company (“Perfect Day”) have signed an agreement wherein Perfect Day will sell its ~50% shareholding in Sterling Biotech Limited (“SBL”). Post this transaction, Sterling Biotech will become a 50:50 Joint Venture (“JV”) with equal representation on the Board.

The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal free protein to cater to the global markets. The JV will accelerate the production of high-quality and eco-friendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition. This partnership marks a significant step forward in the global effort to transform the food industry and promote a healthier planet.

The acquisition will also mark Zydus’ foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance. Perfect Day’s precision-fermented protein is found in ice creams, cream cheese, sports nutrition products, and baked goods with high functionality benefits and lower environmental impact.

This transaction between Perfect Day and Zydus underlines the importance of the emerging global markets for environmentally friendly and sustainable products. Perfect Day will significantly enhance its technological capabilities in India as part of its emerging market growth strategy, while Zydus will continue to leverage its strong manufacturing and commercial expertise. Through this manufacturing partnership both parties reaffirm their commitment of making India a bright spot in the global supply chain.

SBL is currently engaged in manufacturing and selling of fermentation-based API products and gelatine. With a clear vision of focussing on animal-free protein products, the JV partners will also take a strategic view on API and gelatine business.

Speaking on the development, Dr. Sharvil Patel, Managing Director, Zydus Lifesciences Limited, said “We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub. We are excited to join forces with Perfect Day and create a win-win combination that leverages both our strengths and expertise to create value for the consumers.”

Mr. Narayan TM, Interim CEO, Perfect Day said, “This partnership allows Perfect Day to significantly boost its capabilities to meet the demands of the fast-growing global market. We deeply value our collaboration with Zydus and believe this joint venture will allow both parties to benefit from each other’s expertise.”

NovaaOne Capital Private Limited is acting as an exclusive financial advisor to Perfect Day for this transaction.