Drug firm Elder Pharmaceuticals on Tuesday said it has
formed a joint venture with Japan’s Kose Corporation to manufacture and
sell cosmetics in India.
Kose will hold 60 per cent
stake in the JV — Kose Elder (India) Pvt Ltd — while Elder will have the
rest, Elder Pharma said in a statement.
“Kose
products will be produced in the existing plant of Elder Pharmaceuticals
in Paonta Sahib in Himachal Pradesh,” Elder Pharma Joint Managing
Director Alok Saxena said.
The company is looking at getting the project on-stream in the next three months, he added.
Saxena said: “The initial investments could run into couple of million
dollars. We have not finalised business plan as yet, but we are looking
at giving them complete support of manufacturing and distribution in
Indian market.”
He added that the JV will manufacture all kinds of skin care products including creams, lotions and ointment.
“We plan to bring their top-end products in the Indian market using our
distribution and manufacturing support they will be able to do well in
Indian market. Our incremental revenues could run between Rs 30-40 crore
in the first year,” Saxena said.
Kose Corporation is one of the leading Japanese cosmetic companies.
Elder Pharma scrip closed at Rs 304.50 on the BSE, down 1.46 per cent from the previous close.
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