Krka, Laurus Labs form JV to expand in new markets with focus on India
In a significant move within the pharmaceutical industry, Krka, a leading international generic pharmaceutical company based in Novo Mesto, Slovenia, and Laurus Labs (“Laurus” or “the Company”), have announced the formation of a joint venture (JV) company, Krka Pharma Pvt. Ltd., in Hyderabad, India. The venture marks a new chapter in the longstanding relationship between the two companies, with Krka holding a 51% stake and Laurus Labs securing the remaining 49%.
A Strategic Collaboration for Growth:
The partnership is set to leverage the strengths and expertise of both companies to produce finished products targeting new markets, including the vast Indian market. This strategic collaboration is built on years of contractual work and mutual business complementation, aiming to foster synergies by pooling knowledge and resources. The formation of Krka Pharma Pvt. Ltd. is a testament to their commitment to expanding their global footprint, particularly in markets outside the European Union where neither company currently offers its finished products.
Krka and Laurus Labs Join Forces, Establishing a €50 Million Joint Venture in Hyderabad
Investment and Development Plans:
The joint venture is backed by an initial registered capital of up to 50 million euros, converted to Indian rupees, demonstrating the financial commitment of both parties to the success of this initiative. The capital will be contributed in stages, aligned with the joint venture’s business development needs. This step-by-step development strategy underscores a careful approach to penetrating the Indian market and other new regions, ensuring that the venture’s growth is sustainable and strategically aligned with market demands.
Executive Insights:
Dr. Satyanarayana Chava, CEO of Laurus Labs, highlighted the mature and growing business relationship between Krka and Laurus, expressing confidence that the joint venture will bolster their product portfolio and market reach. The focus on delivering quality products to the Indian market over time reflects a long-term vision for the partnership.
Jože Colarič, President of the Management Board and CEO of Krka, d. d., Novo mesto, echoed this sentiment, emphasizing the successful cooperation between Krka and Laurus over the years. Colarič is optimistic about the synergistic effects of the joint venture, foreseeing it as a vehicle for both companies to explore new opportunities, enter uncharted markets, and maintain their status as leading international suppliers of pharmaceutical products.
The establishment of Krka Pharma Pvt. Ltd. by Krka and Laurus Labs represents a strategic maneuver to capitalize on the growing demand for pharmaceutical products in India and beyond. By combining Krka’s global reach and Laurus Labs’ expertise in product development and manufacturing, the joint venture is poised to make significant inroads into new markets, driving innovation in the pharmaceutical sector. This partnership not only signifies the companies’ mutual dedication to quality and excellence but also showcases the potential for collaborative efforts to shape the future of healthcare on a global scale.