Zydus Lifesciences is acquiring a 50 per cent stake in Sterling Biotech (SBL) from Perfect Day Inc, a Temasek portfolio company. The transaction will result in Sterling Biotech becoming a 50:50 joint venture (JV) with equal representation on its board.

In a regulatory filing to the stock exchanges late on Friday, Zydus said the cost of the acquisition will be ₹550 crore.

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

Further, the JV will accelerate the production of high-quality and ecofriendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition.

The acquisition will mark the company’s 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 fermented protein is found in ice creams, cream cheese, sports nutrition products, and baked goods.

“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,’’ Zydus said.

SBL is currently engaged in manufacturing and selling of fermentation-based API (active pharmaceutical ingredient) products and gelatine.

“We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub,” Zydus Lifesciences MD Sharvil Patel said.

Perfect Day interim CEO Narayan TM said the partnership allows the company to significantly boost its capabilities to meet the demands of the fast-growing global market.