Granules India forms JV with Chinese co
Granules India has set up a 50:50 joint venture firm, Granules Biocause, in association with China-based Hubei Biocause Heilen Pharmaceutical to manufacture and sell ibuprofen.
By TNN |
HYDERABAD: Granules India has set up a 50:50 joint venture firm, Granules Biocause, in association with China-based Hubei Biocause Heilen Pharmaceutical to manufacture and sell ibuprofen.
Biocause’s ibuprofen manufacturing facility, fourth largest in the world, will be hived off into the JV. It is an all-cash deal, company officials said, refusing divulge more details.
“The China facility has a capacity of producing 6bn tablets with scope to go up to 12bn tablets,” said Krishna Prasad, managing director, Granules India, addressing a press conference here on Thursday.
Biocause’s assets worth $8.3m, including $6.5m of manufacturing assets, will be hived off into the JV, he added. The transaction process will take about three months to complete.
Granules Biocause will start commercial production by March ’07 and in two years of operation, the topline of the JV company is expected to reach $25m, Mr Prasad said.
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Granules India is also looking at raising funds for its expansion plans through options like FCCB, GDR or through private placement of shares. “We will arrive at a decision on that in few weeks,” he said.Granules India is already in talks with companies in the US to sell finished dosages of ibuprofen. “In the last three years there has been a growth of 3-4% in ibuprofen market. But there is an opportunity for shakeout,” said Vaidyanathan Nateshan, GM-busines development.
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