Laurus Labs & KRKA Slovenia invest ₹90 Cr total in JV for new pharma facility. Shareholding stays 49:51. Q1 profit surges 1,154%.
Laurus Labs-KRKA Pharma JV Expansion
Hyderabad – Laurus Labs has announced a ₹45 crore investment in its joint venture KRKA Pharma Private Limited, with Slovenian partner KRKA d.d. matching the infusion with ₹45.75 crore. The funds will establish a new finished pharmaceutical manufacturing unit in India, targeting domestic and international markets.
Key Details of the Investment
✔ Total Investment: ~₹90 crore (Laurus: ₹45 cr, KRKA Slovenia: ₹45.75 cr)
✔ Shareholding Unchanged: Remains 49% (Laurus) : 51% (KRKA Slovenia)
✔ Purpose: Civil construction for new finished drug production facility
✔ Completion Deadline: December 31, 2025
✔ Funding Method: Equity shares at ₹10 face value
Why This Expansion Matters?
1. Strengthening India’s Pharma Manufacturing
- New unit to produce finished formulations for Indian & global markets
- Supports “Make in India” in pharmaceuticals
2. Maintaining Strategic JV Structure
- Despite capital increase, ownership ratio stays intact
- Ensures continued technology transfer from European partner
3. Laurus’ Growth Momentum
- Comes alongside 1,154% YoY profit surge in Q1 (₹163 cr vs ₹13 cr)
- Revenue up 31% to ₹1,570 crore
About KRKA Pharma JV
- Incorporated: April 12, 2024
- Status: Pre-revenue (commercial ops yet to begin)
- Authorized Capital: ₹270 crore
- Paid-up Capital: ₹215 crore (pre-investment)
Market Implications
📈 Laurus Labs strengthens CDMO & formulations portfolio
🌍 KRKA Slovenia expands Asian manufacturing footprint
💊 India’s finished pharma exports to get boost
Conclusion:
The ₹90 crore combined investment cements the Laurus-KRKA partnership while expanding India’s finished drug manufacturing capacity. With Laurus’ stellar Q1 performance, this move positions the JV for long-term growth in domestic and export markets.