Nestle India Forms JV With Dr Reddy’s To Produce Nutraceutical, Supplements
The joint venture is expected to become operational in the second quarter of financial year 2025.
Nestle India Ltd. and Dr. Reddy’s Laboratories Ltd. have entered into a joint venture for manufacturing and commercialising products in the field of medical nutrition, specialised nutrition, nutraceuticals, and supplements in India and other geographies.
The JV will bring together the well-known global range of nutritional health solutions. The Maggi-manufacturer's JV with Dr. Reddy’s will bring together health solutions of Nestlé Health Science, with the nutraceuticals portfolios and established commercial strengths of Dr. Reddy’s in India.
Nutraceuticals are product that are derived from food sources with extra health benefits, in addition to the basic nutritional value found in foods.
The joint venture is expected to become operational in the second quarter of financial year 2025, the company said.
Dr Reddy’s will hold 51% and Nestle India will hold 49% in the JV company, with proportionate shareholder rights to voting, dividend distribution, and other economic rights.
Nestlé India will have a call option to increase shareholding up to 60% after six years, at a fair market value, and Dr Reddy’s will continue to hold at least 40% of the shareholding after the company exercises its call option.
Nestle India shares were trading 0.59% higher at Rs 2,514 apiece, while Dr. Reddy's stock was up 0.74% at Rs 5,997 per share. This compares to a 0.01% decline in the benchmark Nifty 50 as of 12:51 p.m.