17 October 2019 | News
Granules formed the JV in 2007 to ensure a regular supply of Ibuprofen API to support its requirements for manufacturing Pharmaceutical Formulation
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Granules India Limited, has 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 Heilen Pharmaceutical 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:
Granules have 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 markets. Granules India’s decision to dilute the stake of this JV will not impact its commitment to achieving the profitability target provided for the year even without any additional JV’s contribution to 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.