In this joint venture, Nestlé India will hold a 49 per cent equity while Dr Reddy’s Labs will have a 51 per cent share
Nestlé India announced in a BSE filing that it has invested ₹705.6 crore in a joint venture with Dr Reddy’s Laboratories Ltd. The joint venture will focus on nutritional health solutions and will offer a wide range of products including medical nutrition, specialised nutrition, nutraceuticals, vitamins, minerals, herbals, and supplements. In this joint venture, Nestlé India will hold a 49 per cent equity while Dr Reddy’s Labs will have a 51 per cent share.
Nestlé India subscribed to 70,55,51,000 equity shares of ₹10 each on a rights basis, maintaining its 49 per cent shareholding in the JV. Dr Reddy’s Labs continues to hold a 51 per cent shareholding through 73,44,00,000 equity shares with a face value of ₹10 each.
Additionally, Nestlé India has executed a Business Transfer Agreement for the slump sale of its existing medical nutrition and nutraceuticals (NHSc) Business to the JV Company for a lump sum consideration of ₹218.90 crore.