Dishman Pharmaceuticals and Chemicals has entered into a joint venture with three pharmaceutical companies in Saudi Arabia. The new venture will manufacture active pharmaceutical ingredients (API), reported Business Standard.
The work is expected to be completed in a 15 months time. The project will be a 50:50 joint venture between Dishman and Takamul.
Business Standard quoted, JR Vyas, managing director of Dishman Pharma, as saying: “We have invested $9m to pick up 30% stake in the newly formed $100m company CAD. Arab Company for Drug Industries and Medical Appliances (ACDIMA) has 15% stake, Spimaco, one of the formulation manufacturers in the Arab world owns 20 % while Capital Advisory Group owns 25 %. Saudi Industrial Development Fund (SIDF) has offered a $55m soft loan to the joint venture company for 15 years.”
Additionally, Dishman is planning to invest INR1500m in the SEZ (special economic zone) to build manufacturing facility. The company also said that it will expand its existing facility with an investment of INR1500m. This facility is based in Bavla. The facility will be expanded by 1000 m2.
The Saudi venture will manufacture disinfectants and the product will be available for commercial production in 2010, reported the newspaper.