Shilpa Medicare forms a 70:30 JV with Saudi’s PPI to localize pharma manufacturing. The 2-phase plan ensures rapid market entry & full tech transfer, aligning with Saudi Vision 2030.
UAE Subsidiary Koanna International Partners with PPI to Localize Pharma Manufacturing in Kingdom of Saudi Arabia
Raichur, India / Riyadh, Saudi Arabia – In a strategic move to expand its global footprint and tap into the lucrative Middle Eastern market Shilpa Medicare Limited has announced that its wholly-owned UAE subsidiary, Koanna International FZ LLC has entered into a definitive agreement with Pharma Pharmaceutical Industries & Biological Products (PPI) of Saudi Arabia to form a new joint venture company (JVC).
The JVC, which will be based in the Kingdom of Saudi Arabia (KSA) will be 70% owned by PPI and 30% by Koanna International. This structure leverages PPI’s deep local market expertise and Shilpa’s robust global capabilities in R&D manufacturing, and regulatory affairs.
A Two-Phased Approach for Swift Market Entry and Localization
The partnership is designed for both immediate impact and long-term sustainability to be executed in two key phases:
- Phase 1: Rapid Market Entry: Shilpa Group will supply finished products in bulk to the JVC for repackaging at a new fully-equipped facility in KSA. This allows for a swift launch of products into the Saudi market. PPI will lead the establishment of this facility with technical input from Shilpa.
- Phase 2: Full Technology Transfer & Local Manufacturing: Shilpa Group will execute a complete transfer of its manufacturing processes to the JV. This will empower the JVC to commence local production of finished products a core objective of Saudi Arabia’s Vision 2030.
Leadership Insight: A Partnership Built on Complementary Strengths
Vishnukant Bhutada, Managing Director of Shilpa Medicare highlighted the synergy: “We are excited to partner with PPI. This JV combines PPI’s unmatched local strength with Shilpa’s innovative technology to improve healthcare in the Kingdom. PPI is the ideal partner to make our products more accessible. This JV underscores our commitment to Saudi Arabia and will consolidate our presence across the MENA region.”
Alignment with Saudi Vision 2030
This venture is a significant step in Saudi Arabia’s ambitious Vision 2030 plan, which aims to:
- Diversify the economy away from oil dependence.
- Localize strategic industries, including pharmaceuticals (“Local Content” and “IKTVA” programs).
- Enhance the Kingdom’s healthcare infrastructure and self-sufficiency.
Regulatory Pathway and Financial Health
Shilpa Medicare will be responsible for preparing the complete regulatory registration dossier in compliance with the Saudi Food and Drug Authority (SFDA) and will lead the process of obtaining market authorization a critical step for commercial success.
The announcement comes on the back of strong financial performance by Shilpa Medicare. The company reported a surge in consolidated net profit to ₹46.89 crore in Q1 FY25 (ended June 2025) compared to ₹14.06 crore in the same quarter last year. Sales also rose 9.90% to ₹321.46 crore year-on-year.
The market responded positively, with Shilpa Medicare’s scrip rising 0.52% to ₹827.75 on the BSE following the news.
This JV represents a pivotal expansion for Shilpa Medicare solidifying its presence in the MENA region and creating a new growth engine aligned with one of the world’s most transformative economic visions.
