Multinational pharmaceutical company Natco Pharma Ltd has received approval for the establishment of a subsidiary in Indonesia. The company plans to invest up to USD 3 million in this venture, primarily focusing on distributing pharmaceutical products within the Indonesian market. The subsidiary, named PT Natco Lotus Farma, will be formed as a joint venture, with Natco holding a majority stake of 51%, while local distributor PT Mitra Medis Exim (MME) will hold the remaining 49% as the co-promoter.
Natco Pharma will initially invest USD 1 million in the subsidiary in exchange for the 51% ownership stake. The remaining funds needed for the subsidiary’s operations will be invested gradually. Natco Pharma expects the subsidiary to be set up by April 2024.
By establishing the subsidiary, Natco Pharma aims to penetrate the Indonesian market and expand its business into new regions. The subsidiary will focus on selling pharmaceutical products, leveraging the opportunities present in the Indonesian market. This strategic expansion will enable Natco to tap into new customer bases and capitalize on Indonesia’s pharmaceutical market potential.
(Source: The Times of India)