Akums Drugs announces JV to set up manufacturing facility in Zambia

Akums will hold 51% in its joint venture with the Zambian government to set up a pharma manufacturing facility, marking its first overseas plant and Africa expansion

In a bid to expand its foothold in the African continent, India’s largest contract drug and manufacturing organisation (CDMO), Akums Drugs and Pharmaceuticals, on Monday announced a joint venture (JV) with the Government of Zambia for setting up a pharma manufacturing facility in the country.

 

Akums will hold a 51 per cent stake in the JV, while the Zambian government, through its nominated state instrumentality, will hold the remaining 49 per cent.

 

The company is expected to be established by Q3 FY26, after which construction of the facility will begin. The JV will be managed by a board with representatives from both partners.

   

While the company did not specify an investment figure, officials told Business Standard that both partners will contribute to the establishment and operationalisation of the facility in proportion to their shareholding.

 

“Akums’ contribution will include capital infusion along with product technology, while the Government of the Republic of Zambia will bring in capital through a mix of equity and debt,” said Sanjeev Jain, managing director at Akums.

 

He added that the total investment for establishing the manufacturing facility will be spread over the financial years (FYs) 2025-26, 2026-27, and 2027-28.

 

Commercial supply from the facility is expected to begin in two years, that is, Q3 FY28, subject to timely completion of the plant. The new unit will focus on manufacturing generics such as tablets, hard gelatin capsules, liquids, injectables, and beta-lactam products. 

 

This will be Akums’ first international facility outside India and comes at a time when the firm has been exploring opportunities in the African pharma market.

 

Jain told Business Standard that Akums has been exporting to Africa for over a decade, and the continent remains one of its key focus markets.

 

Commenting on future expansion in Africa, Jain said that with this being Akums’ first overseas manufacturing facility, the immediate priority is to make the Zambia plant a success.

 

“At the same time, the facility is strategically positioned to cater to neighbouring African nations, offering us significant opportunities to expand our footprint further across the region,” he added.

 

The company is aiming to use the new facility to export to neighbouring African countries such as Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique.

 

Akums added that the Zambian government has also committed to purchase essential medicines from its facilities in India, with the order value expected to be worth at least $25 million annually for calendar years (CYs) 2026 and 2027.

 

“Currently, over 75 per cent of Zambia’s essential medicines are imported, and this partnership will allow the country to move towards self-reliance in healthcare and reduce import dependency,” Akums said in a statement.