Step towards full backward integration with supply chain says Granules MD

12 October 2006

Granules India has announced a 50:50 JV with Chinese company Hubei Biocause Pharmaceutical Company to manufacture and sell ibuprofen.

Krishna Prasad, managing director, Granules India, says this is the first step towards strengthening their relationship and fully integrating backwards into their supply chain, which is the model for Granules India.

He adds that the actual assets that are being transferred to the joint venture will be about $8 million. CNBC-TV18 shares with domain-b its interview with Prasad:

Could you give us more details of the joint venture, what's your role going to be in it and how much of an investment would you be looking at making?
This company has been our supplier of ibuprofen for quite sometime. This is the first step towards strengthening our relationship and fully integrating backwards into our supply chain, which is the model for Granules India.

Biocause, the parent company is spinning this ibuprofen plant into a separate entity and we would be owning 50:50 equity in this.

Biocause would be managing the manufacturing operations and Granules India would be lending its market reach, market expertise and market understanding in the regulated markets to Biocause.