25. 1. 2024
Establishment of a joint venture in India
3 min. read
Krka and Laurus Labs Ltd. from India have reached an agreement to establish a joint venture company Krka Pharma Pvt. Ltd. in Hyderabad, India. Krka will hold 51% and Laurus 49% share in the joint venture. The registered capital of the newly founded company amounts to up to 50 million euros in Indian rupees. The joint venture will enable the production of finished products for the new markets, including the Indian market.
Krka and Laurus have been working together contractually for many years and their businesses complement each other. The partners have discussed opportunities to strengthen co‑operation and create synergies by combining their knowledge and resources. Krka and Laurus have agreed to establish a joint venture company Krka Pharma Pvt. Ltd. with registered seat in Hyderabad, India. Krka will hold 51% and Laurus 49% share in the joint venture company. It is expected that the necessary procedures and documentation for the registration of the new joint venture company will be finalised by the end of March 2024.
The parties have agreed on a step-by-step development of the joint venture company. The newly formed company will develop a plan to enter the Indian market and other markets outside the European Union where neither party is currently present with its finished products.
The registered capital of the newly established company is up to 50 million euros in Indian rupees. Krka and Laurus have agreed to subscribe to the registered capital in stages, depending on the financing needs of the gradual development of the joint venture’s business activities.
Mr. Jože Colarič, President of the Management Board and CEO of Krka, d. d., Novo mesto, commented on this development: “Krka has successful cooperation with Laurus for many years. Both companies are dedicated to deliver products of the highest quality. We believe that the joint company will have synergistic effects for both companies, and would enable them to explore all opportunities, enter new markets and remain among leading suppliers of pharmaceutical products on the international market.”
Dr. Satyanarayana Chava, Executive Director and CEO of Laurus Labs Ltd., commented: “Our business relationship with Krka is very matured over the years and growing year on year. This JV further cement our relationship to enhance product portfolio and markets. The JV also have plans to service quality products to India market over period of time.”