Laurus Labs enters into Joint Venture Agreement with KRKA, Slovenia

Krka, an international generic pharmaceutical company in Novo Mesto, Slovenia and Laurus Labs Ltd. (Laurus BSE: 540222, NSE: LAURUSLABS, ISIN: INE947Q01028) ("Laurus" or "the Company") 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 up to Indian rupees equivalent to 50 million euros. 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 amounts up to Indian rupees equivalent to 50 million euros. 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.

Commenting on this development, CEO of Laurus Labs Dr. Satyanarayana Chava said, ""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."

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."

Shares of Laurus Labs Limited was last trading in BSE at Rs. 378.55 as compared to the previous close of Rs. 398.55. The total number of shares traded during the day was 913453 in over 12238 trades.

The stock hit an intraday high of Rs. 386.45 and intraday low of 358.70. The net turnover during the day was Rs. 337775796.00.

Source : Equity Bulls

Keywords

LaurusLabs INE947Q01028 JVCompany Krka Slovenia