Elder Pharma forms JV with Kose to manufacture cosmetics for Indian marketplace

Indian pharmaceutical manufacturing & marketing firm Elder Pharmaceuticals has entered into a joint venture (JV) with Japanese cosmetics company Kose for manufacturing and selling cosmetics in India.

Under the JV, the drug maker will own a 40% stake and Kose would retain the rest. The financial terms and conditions of the partnership were not disclosed.

The new entity, which will be known as Kose Elder, is expected to start its operations in the first quarter of fiscal 2014 and will sell Kose’s entire range of cosmetics in Indian market.

As part of the agreement, both companies are aiming to use and synchronise Japan’s advanced technology with the universal aesthetic demanded by the Indian woman.

Elder’s joint managing director Alok Saxena was quoted by livemint.com as saying that the key investment in the joint venture is going to be in the marketing and distribution side as the firm already controls several manufacturing units in the country, which have the capabilities to manufacture cosmetics for the joint venture company.

"Elder has already established and run several subsidiaries abroad and with Kose alliance it is Elder’s first joint venture in India," said Saxena.

Japanese brokerage and investment banker Nomura Securities acted as financial adviser to Elder for the deal.

Mumbai-based Elder Pharma has its presence in manufacturing and distribution of pharmaceuticals formulations and APIs and has government recognised R&D centre.

The company operates in niche therapeutic segments such as women healthcare, wound care and pain management, nutraceuticals and lifestyle disease care.