Bulk drugs major Aurobindo Pharma Ltd and the Chennai-based Citadel Fine Pharmaceuticals Ltd (CFPL) have joined hands to promote a 50-50 joint venture (JV), which will take over the branded formulations business of both the companies.
Citadel Aurobindo Biotech Ltd, the joint venture, will own 80-odd formulation brands of both the companies, whose combined turnover is expected to around Rs 100 crore in the current fiscal.
The JV will combine the strengths and talents of both the companies with a field force of 800 and network of over 1,500 stockists, distributors and clearing and forwarding agents.
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As per the strategy, both the companies will contribute an initial equity of Rs 1 crore each, in addition to transferring the ownership of the formulation brands on a valuation basis.