Dr. Reddy's and Nestle Forge ₹734 Crore Health Venture

Dr. Reddy’s Laboratories has invested ₹734 crore in a new joint venture with Nestle India, forming Dr. Reddy’s and Nestle Health Science. This strategic partnership gives Dr. Reddy’s a 51 percent stake in the Hyderabad-based JV, while Nestle India has invested ₹705.6 crore for a 49 percent stake, bringing the total paid-up share capital to around ₹1,440 crore.

The funds will be used to acquire nutritional health solutions and other resources from both companies. This collaboration aims to leverage the strengths of the Nestle Group and Dr. Reddy’s to expand their nutraceuticals portfolios in metabolic health, hospital nutrition, general wellness, women’s health, and child nutrition across India and Nepal.

The JV will benefit from Nestle’s extensive brand portfolio, including Nature’s Bounty, Osteo Bi-Flex, Ester-C, Resource High Protein, and Resource Diabetic. These brands will be licensed to the new company, enhancing its product offerings in the health and wellness space.

In line with the agreement, the JV has already paid ₹821.7 crore upfront for licensing several nutritional and OTC products from Dr. Reddy’s, including Rebalanz, Celevida, and Becozinc. This move strengthens the JV's market position and product range.

This partnership marks a significant step forward in the health and wellness industry, combining Dr. Reddy’s pharmaceutical expertise with Nestle’s nutritional prowess to deliver innovative health solutions in the region.

News by  Rahul Yelligetti