Zydus to Expand into Fermentation-Based Proteins with Sterling Biotech Stake Acquisition

Zydus Lifesciences Limited informed the stock exchanges that through its wholly owned subsidiary, and Perfect Day Inc., a Temasek portfolio company, have entered into an agreement where Perfect Day will sell its approximately 50% stake in Sterling Biotech Limited (SBL). As a result, SBL will become a 50:50 Joint Venture (JV) with equal board representation from both companies.

The JV will focus on building a state-of-the-art manufacturing facility dedicated to producing fermented, animal-free protein for global markets. This collaboration aims to accelerate the production of high-quality, eco-friendly protein products, reducing environmental impact and meeting the increasing consumer demand for fermentation-based, ethically sourced nutrition. This partnership is a significant milestone in the global effort to revolutionise the food industry and promote a healthier planet.

This acquisition marks Zydus’ entry into specialised biotech products in the health and nutrition sector, particularly targeting consumers who prefer animal-free protein or are lactose intolerant. Perfect Day’s precision-fermented protein, already used in products like ice cream, cream cheese, sports nutrition items, and baked goods, offers high functionality with a lower environmental footprint.

The transaction underscores the growing importance of environmentally friendly and sustainable products in global markets. Perfect Day will enhance its technological capabilities in India as part of its emerging market growth strategy, while Zydus will leverage its robust manufacturing and commercial expertise. Through this partnership, both parties reaffirm their commitment to making India a key player in the global supply chain.

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

Currently, SBL manufactures and sells fermentation-based API products and gelatine. The JV partners will strategically assess the future of these businesses, with a clear focus on expanding into animal-free protein products.

Commenting on the development, the Managing Director of Zydus Lifesciences Limited, Dr Sharvil Patel, 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.”

The Interim CEO of Perfect Day, Mr Narayan TM, 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.”

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