Fipb Clears Novartis Health Food Jv

The Foreign Investment Promotion Board (FIPB) has cleared a proposal by Swiss healthcare and nutrition company, Novartis Nutrition AG, to set up a 49:51 joint venture company in India. The board has forwarded the proposal for the industry ministers approval.

The Swiss company has proposed to pump in foreign capital worth Rs 49 lakh to take a 49 per cent stake in the joint venture while the remaining 51 per cent would be held by a local partner. The company is projecting exports of $3 million-$5 million during its first five years of operations.

Though the ministry of food processing has supported the proposal, the health ministry has asked for it to be deferred because it does not directly relate to it. In any case, the products would be governed by the FPO (Food Preservation Order).

 

The proposal submitted to the FIPB states that Novartis intends to manufacture and market speciality nutrition food products including complete foods, food supplements and other planned nutrition products in the country.

The planned nutrition products to be manufactured and marketed by the joint venture company would fall under the following categories:

Complete liquid diets with the requisite amount of micro and macro nutrients.

Ready-to-use nutritionally balanced complete food and supplements for oral and tube feeding.

Elemental diets for individuals with malabsorption and those who need easily digestible, high nutrient diets, apart from protein supplements with minerals and vitamins.

Some of the brands falling under these categories, which Novartis proposes to manufacture in India, are Resource, Sandosource, Oral Impact, Meritene and Vivonex.

Novartis Nutrition, a group company within the fold of Novartis International, is one of the largest healthcare and speciality nutrition food manufacturers in the world. Novartis was formed following the merger of two healthcare giants, Ciba-Giegy and Sandoz in 1996.

The board of Novartis International consists of eight directors, with four directors each drawn from Ciba-Giegy and Sandoz.