Shares of Shilpa Medicare surged another 2.5% in Wednesday’s session, taking their two-day rally to over 5%, after the company announced plans to set up a new joint venture in Saudi Arabia with Pharma Pharmaceutical Industries and Biological Products (PPI).
The JV will be established through Shilpa’s wholly owned UAE subsidiary, Koanna International FZ LLC, which will hold a 30% stake, while PPI will retain the majority 70%.
As per the company’s filing, the venture will be executed in two phases. In the first stage, Shilpa will supply bulk finished formulations for repackaging in Saudi Arabia. PPI, under Shilpa’s guidance, will concurrently develop a local manufacturing facility. The second stage will see Shilpa transfer its technology for full-scale local production, while also managing regulatory submissions to the Saudi Food and Drug Authority.
The company highlighted that the initiative is in line with Saudi Arabia’s Vision 2030 programme, which aims to strengthen domestic manufacturing and bolster the healthcare ecosystem.
