Hyderabad: Belgian chemical producer Ajinomoto Omnichem on Thursday formed an equal joint venture with Indian drug maker Granules India Ltd to manufacture pharmaceutical ingredients and intermediates for other companies.
The joint venture, Granules-Omnichem Pvt. Ltd, will construct a $20-million production facility at the Pharmacity special economic zone in Visakhapatnam, Andhra Pradesh, where it will start contract manufacturing, the two companies said at a press conference.
The facility’s construction will start in November and is expected to be completed by late next year.
The venture is seeking to tap demand for outsourced manufacturing of active pharmaceutical ingredients, or APIs, as it focuses on the generic drugs market, estimated at $234 billion.
Granules-Omnichem will produce APIs and intermediates for the existing customers of the two partners and later turn to manufacturing new chemical entities.
“Our shareholders will benefit since this will enable Granules to diversify its business by offering high value APIs and intermediates, which will increase our profitability,” said Krishna Prasad, managing director of Granules India.
For Ajinomoto Omnichem, the tie-up is part of a commitment to offer “quality medicines at an affordable price,” the Belgian company’s managing director Gwin Bompas said.