Zydus to acquire 50% stake in Sterling Biotech from Perfect Day

The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal-free protein to cater to the global markets

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 per cent shareholding in Sterling Biotech Limited (SBL). After 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, which have 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 to making India a bright spot in the global supply chain.

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

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