Elder Pharma, Kose Corp form JV to sell cosmetics in India
New Delhi: Drug firm Elder Pharmaceuticals on Tuesday said it has formed a joint venture with Japan's Kose Corporation to manufacture and sell cosmetics in India.
Kose will hold 60 percent stake in the JV - Kose Elder (India) Pvt Ltd - while Elder will have the rest, Elder Pharma said in a statement.
"Kose products will be produced in the existing plant of Elder Pharmaceuticals in Paonta Sahib in Himachal Pradesh," Elder Pharma Joint Managing Director Alok Saxena said.
The company is looking at getting the project on-stream in the next three months, he added.
Saxena said: "The initial investments could run into couple of million dollars. We have not finalised business plan as yet, but we are looking at giving them complete support of manufacturing and distribution in Indian market."
He added that the JV will manufacture all kinds of skin care products including creams, lotions and ointment.
"We plan to bring their top-end products in the Indian market using our distribution and manufacturing support they will be able to do well in Indian market. Our incremental revenues could run between Rs 30-40 crore in the first year," Saxena said.
Kose Corporation is one of the leading Japanese cosmetic companies.
Elder Pharma scrip closed at Rs 304.50 on the BSE, down 1.46 percent from the previous close.