Mumbai: To tap into the changing world of women’s fashion and taste in cosmetics, drug-maker Elder Pharmaceuticals has forged its maiden joint venture with Japanese firm Kose Corporation.
“It is a completely different area for us,” Elder Pharma Joint Managing Director Alok Saxena told Business Line, adding that Elder would make the specialised cosmetics at its Paonta Sahib plant, in Himachal Pradesh.
Elder has in the past followed the strategy of in-licencing products from foreign companies. The departure this time to form a joint-venture format was because of the huge opportunity in the domestic market, he said.
The product portfolio includes skincare and body care products, he said, adding that they were over-the-counter (OTC) products.
The Japanese firm will hold 60 per cent equity in the venture, and Elder the remaining 40 per cent.
The reason the cosmetic tie-up happened with the Rs 1,350-crore Elder Pharma and not its healthcare arm, was because the Japanese company needed specialised manufacturing, something the pharma company was familiar with, he said.
The cosmetics, to be made locally, will be in the market in three months, he added.
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