Shilpa Medicare shares surged over 2% in early morning trade after the pharmaceutical giant announced a major step toward expanding its international presence with a new joint venture in Saudi Arabia. The shares were up 2.20% at ₹834.70 apiece around 9:58 am. It has jumped 2.10% this year, so far.
The company has partnered with Pharmaceutical Industries & Biological Products (PPI), a leading Saudi firm, through its wholly-owned subsidiary, Koanna International FZ LLC UAE. Under the agreement, PPI will hold a 70% stake, while Koanna will own the remaining 30%, marking a significant collaboration between Indian pharmaceutical expertise and local Saudi market knowledge.
This partnership leverages the strengths of both companies. PPI brings deep insights into the local market, while Shilpa Medicare contributes its capabilities in research and development, manufacturing, and regulatory compliance. The joint venture aligns with Saudi Arabia’s Vision 2030 initiative, which focuses on economic diversification and strengthening local production in strategic sectors, including healthcare.
The joint venture will be implemented in two phases. In the initial phase, Shilpa Medicare will supply bulk finished products for repackaging at the new facility, ensuring a swift entry into the Saudi market. PPI will manage the establishment of a state-of-the-art manufacturing plant, guided by Shilpa’s technical expertise.
In the second phase, Shilpa Medicare will transfer full manufacturing technology to the venture, enabling local production of finished products. The company will also prepare the complete regulatory registration dossier for the Saudi Food and Drug Authority (SFDA) and assist in obtaining market approvals. PPI will handle the infrastructure and packaging equipment, ensuring compliance with international quality standards.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
