Zydus Lifesciences Limited (“Zydus”), via its wholly owned subsidiary, has entered into an agreement with Perfect Day Inc., a Temasek portfolio company. Under this agreement, Perfect Day will divest its approximately 50% equity stake in Sterling Biotech Limited (“SBL”). Sterling Biotech will undergo a restructuring to form a 50:50 Joint Venture (JV) with an equal partnership between the two involved parties.

The newly formed Joint Venture will build a cutting-edge manufacturing facility dedicated to producing fermented animal-free protein for international markets. This initiative aims to advance the production of high-quality, eco-friendly protein products, meeting the increasing consumer demand for sustainable and ethically sourced nutrition. It represents a significant move toward transforming the food industry and supporting environmental sustainability.

The acquisition marks Zydus’s entry into specialized biotech products for health and nutrition, focusing on consumers seeking animal-free protein or those with lactose intolerance. Perfect Day’s precision-fermented protein, used in ice creams, cream cheese, sports nutrition, and baked goods, offers high functionality and reduced environmental impact.

This transaction highlights the growing importance of sustainable products in global markets. Perfect Day will boost its technological capabilities in India, aligning with its emerging market expansion strategy, while Zydus will leverage its expertise in manufacturing and commercialization. Both parties are committed to enhancing India’s role in the global supply chain.

Sterling Biotech Limited (SBL), currently producing fermentation-based API products and gelatine, will pivot towards a focus on animal-free protein under the JV. The partners will also strategically evaluate the future of their API and gelatine businesses.

Dr. Sharvil Patel, Managing Director of Zydus Lifesciences Limited, expressed enthusiasm about the company’s commitment to fostering growth through strategic partnerships. He emphasized Zydus's ongoing efforts to enhance India’s role as a leading global supply chain hub. Patel highlighted the excitement of collaborating with Perfect Day, noting that the partnership leverages the strengths and expertise of both companies to deliver significant value to consumers, creating a mutually beneficial arrangement that aims to drive innovation and progress in the industry.

Mr. Narayan TM, Interim CEO of Perfect Day, highlighted that the partnership with Zydus will substantially enhance Perfect Day’s capacity to address the increasing global market demand. He emphasized the value of the collaboration, expressing confidence that the joint venture will enable both companies to leverage their respective strengths and expertise, leading to mutual benefits and greater success in the evolving industry landscape.

Perfect Day, a pioneering company founded in 2014, is committed to creating a sustainable future through innovative food technology. The company's groundbreaking precision-fermented protein, introduced in 2020, is now a key ingredient in various animal-free food products, including ice cream, cream cheese, baked goods, and sports nutrition.

Sterling Biotech Limited is a prominent producer of pharmaceutical gelatine, di-calcium phosphate, and select active pharmaceutical ingredients (APIs). The company operates two manufacturing facilities located in Gujarat, India.