Dishman, ACDIMA pact to manufacture APIs in Arab market

EPP News Bureau - Mumbai

Dishman Pharma- ceuticals & Chemicals (DPCL) has entered into various agreements with Arab Company for Drug Industries and Medical Appliances (ACDIMA) for setting up a joint venture (JV) to manufacture 20 Active Pharmaceutical Ingre-dients (APIs) in Arab countries.

For the various JV projects under consideration, CAG arranges interest free loans to finance 50 per cent of the project cost.

This loan is repayable in 20-24 half-yearly installments after a moratorium of 3-4 years. 25 per cent of the project cost is financed by a term loan from commercial banks in Arab Nations. The balance 25 per cent project cost is financed through equity. DPCL will hold a 51 per cent stake in the JV. The project cost of the JV is $100 million.

Out of the equity portion of $25 million, DPCL will contribute $12.75 million, according to a press release.

DPCL’s contribution to the equity would be mainly by way of fees for technology supply, imparting training to ACDIMA to personnel, supply of equipments and balance in cash, the release explained.

The JV, according to the company, is likely to improve the capacity utilisation of Bawla plant of DPCL.