Chennai March 8, 2014 : Chennai-based Shasun Pharmaceuticals has formed a joint venture with SeQuent Scientific to manufacture veterinary products at its Visakhapatnam facility, the company said in a statement to the BSE.
As part of the venture, an agreement has been signed to transfer the facility to SeQuent. The transfer is a “slump sale,” which means the business undertaking has been transferred to SeQuent for a lump sum consideration. The shareholder approval was obtained in January.
Shasun will hold 27 per cent in the venture. The new company will manufacture Active Pharmaceutical Ingredients and formulations of veterinary drugs.
“The production will start from April. During the first year we are targeting a revenue of Rs. 400 crore,” S Abhaya Kumar, Chief Executive Officer, told Business Line .
The company had acquired the land for the Visakhapatnam facility in 2007, but construction had started only in 2012. It has spent Rs. 130 crore on the facility. “In 2013, we could have started producing drugs on our own, but when this opportunity came, we decided to keep the factory idle for some more time and get this deal.”
The company had announced in July 2013 about a possible tie-up with SeQuent. A company official said the name of the venture has yet to be finalised.
