Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

Granules India Limited to divest its stake in its Joint Venture located in China

Posted On: 2019-10-14 12:03:06


Granules India Limited, today announced its intention to divest its entire equity shareholding in Granules Biocause Pharmaceuticals Co, Ltd. by selling its stake to joint venture partner, Granules Biocause Pharmaceuticals Co. Ltd. is an equal joint venture between Granules India Limited and Hubei Biocause Heiien Pharmaceuticai Co Ltd. The manufacturing facility of the joint venture is in Jingmen, China.

Granules formed the JV in 2007 to ensure a regular supply of ibuprofen API to support its requirements for manufacturing Pharmaceutical Formulation intermediates and Finished Dosages. The key reasons for exiting the JV are as follows:

- Environmental issues have created an atmosphere of business uncertainty in China To comply with regulatory issues on pollution, Granules Biocause Pharmaceuticals' production facility had invested and will continue to invest substantial capex, which is contrary to Granules India's strategy of reducing Capex outflow and Free Cash Flow generation.

- Several existing Ibuprofen API manufacturers have expanded capacity or stated their intention to increase capacity. In addition, several companies have announced their intention to enter the ibuprofen API market, Granules believes the additional API supply will enable it to have more supply options and having a JV is not necessary to ensure ibuprofen API continuity.

Granules has a supply agreement with the JV and ibuprofen API supply will not be impacted since the existing agreement will continue. In addition, Granules has several other reliable approved suppliers of ibuprofen API in the international and domestic market Granules India's decision to dilute the stake of this JV will not impact its commitment of achieving the profitability target provided for the year even without any additional JV's contribution in the consolidated Net Profit. Further, the sale proceeds from this transaction will enable Granules India's Cash position and will eventually reduce the Net Debt position.

Shares of GRANULES INDIA LTD. was last trading in BSE at Rs.100.45 as compared to the previous close of Rs. 102.65. The total number of shares traded during the day was 21145 in over 340 trades.

The stock hit an intraday high of Rs. 102.45 and intraday low of 98.25. The net turnover during the day was Rs. 2134397.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

ITC Ltd forms subsidiary ITC IndiVision Limited

Celent Recognizes Majesco with XCelent Award for Depth of Service in the North American Policy Administration Systems 2020 Personal, Commercial and Specialty ABCD Vendor View Report

Sadbhav Engineering Ltd reports Rs. 886.63 crore PAT in Q4 FY20

NLC India Ltd's project in Andaman commissioned

Swarnsarita Gems Ltd Q4 consolidated PAT at Rs. 0.26 crore

PNB Housing Finance Ltd reworks business plan for FY2020-21

Arihant Capital Markets Ltd posts Rs. 2.18 crore consolidated PAT in Q4 FY20

Inducto Steel Ltd Q4 FY20 net profit at Rs. 0.52 crore

Dai-Ichi Karkaria Limited enters into agreement for sale of land

Sun Pharma launches 'Thank you Doctor' campaign

Reliance and bp launch 'Jio-bp' partnership

Arihant Capital Markets Ltd Board approves Dividend for FY20

HPL Electric & Power Ltd Q4 FY20 consolidated PAT drops to Rs. 2.51 crore

HPL Electric & Power Limited board recommends final dividend of Rs. 0.15

TCS board declares interim dividend of Rs. 5 for FY2020-21

TCS Q1FY21 consolidated PAT lower at Rs. 7008 crore

Kabra Extrusiontechnik Ltd posts consolidated PAT of Rs. 0.74 crore in Q4

HCC FY20 Revenue at Rs. 3,676 Crore; EBITDA margin at 12.7%

Jaguar Land Rover Reports Q1 Fiscal 2020/21 Retail Sales

Muthoot Capital Services Limited completed transaction of Rs. 100.89 crores through securitization of portfolio

Vessel Seamec Gallant's contract extended for 1 year

W H Brady & Co. Ltd. Q4 FY20 consolidated loss at Rs. 0.24 crore

Arvind Fashions Ltd reports loss of Rs. 204.33 crore in Q4 FY2020

Vedanta readies for post-Covid economic recovery, strengthens its Advisory Board by appointing former Secretary, GoI and ex-SAIL Chief

Arvind Fashions Ltd signs agreement for sale of Flying Machine business

Ind-Ra affirms rating of Arvind SmartSpaces Limited

ALANKIT Ltd enters into Business Correspondent Agreement with IDBI Bank

Hexaware Launches COCO-Unified Teams Bot for Improved Employee Experiences & Seamless Return to Workplaces

Zensar featured in ISG's 2020 Digital Case Studies Book

Britannia Industries Ltd board to approve Q1 results on July 17, 2020

Flipkart Group and Arvind Fashions Strengthen Partnership

SBI Life Insurance Company Ltd board to consider Q1 results on July 21, 2020

BHEL successfully commissions World's first Solar PV Plant for Rail Traction application

Praj strides into the next frontier of Bioeconomy

Hitachi ABB Power Grids India wins INR 120 crore order for Indian Railways electrification

Karur Vysya Bank partners with Tata Motors to offer car loans at attractive terms

IIFL Finance Ltd allots 2000 NCDs

YES Bank files RHP for FPO

Linc Pen and Plastics Ltd update on FY21

Strides receives USFDA approval for Butalbital, Acetaminophen, Caffeine, and Codeine Phosphate Capsules

ICICI Prudential Life Insurance Company Ltd board to approve 1st quarter FY21 results on July 21, 2020

Sharika Enterprises Ltd bags order from BHEL

Swelect Energy Systems Limited board recommends final dividend of Rs. 0.75

SpiceJet facilitates insurance of passengers for COVID-19 hospitalisation starting at Rs. 443/-

Shoppers Stop Limited opens new store at Phoenix Palassio - Lucknow

PI Industries Ltd closes QIP, fixes price as Rs. 1470

YES Bank has sold 2.66% stake in CG Power & Industrial Solutions Limited

NMDC's excellent performance at Bailadila Projects, Chhattisgarh, during lockdown

The Phoenix Mills Ltd. opens doors of its grand palatial shopping mall, Phoenix Palassio, in Lucknow

Swelect Energy Systems Ltd Q4 consolidated loss at Rs. 14.87 crore







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019