Granules inks outsourcing deal with Aussie firm

Granules India Limited, engaged in the manufacture of pharmaceutical formulation intermediates, on Monday announced that it has entered into an outsourcing agreement with Australia-based Matchland Pty Ltd (trading as New Products Development).

Under the agreement, New Products Development will outsource its finished dosage manufacturing requirement to Granules India for the Australian market.

Five products have been identified for the initial manufacturing and the list is expected to grow as the relationship progresses.

The agreement is in the nature of a partnership wherein New Products Development will compensate Granules for all the costs incurred in manufacturing and will also provide a transparent profit margin.

This is New Products Development's first outsourcing agreement with any Indian company and it effectively complements Granules strategy of expansion into lesser explored markets like Australia and New Zealand, according to a Granules press release.

Commenting on the deal, C Krishna Prasad, managing director, said, "We are planning to use our TGA-approved pilot manufacturing capabilities to kickstart the manufacturing as soon as possible."

Granules recently approved the allotment of 14.9 per cent stake to US-based Ridgeback Capital Investment LLC. The company will issue 22,11,200 equity shares of Rs 10 each fully paid-up at Rs 105.50 per share (including premium) to Ridgeback Capital or their affiliates on a preferential basis.