Cipla to invest Rs225 crore for setting up manufacturing unit in Iran

Indian pharmaceuticals major Cipla has signed an agreement with its Iranian distributor for setting up a manufacturing facility in that country. Cipla will hold a majority 75 per cent equity stake in the joint venture.

Cipla will be investing around Rs225 crore in the unit, which is expected to come up over the next three years. Cipla will provide the necessary machinery, equipment and technical know-how.

''Cipla Ltd has informed BSE that the company has signed a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran. The total contribution from the company over the next 3 years will include machinery, equipment, technical know-how and is expected to be approximately Rs225 crore for a 75 per cent stake,'' Cipla said in a filing with the BSE.

Cipla said the proposed investment is subject to completion of certain conditions precedent and applicable regulatory approvals.

Established in 1935, Cipla currently has over 2,000 products with presence in more than 170 countries.

Cipla last month said the company was planning to expand its presence in Kenya, in line with its global strategy.

''Cipla continues to retain ownership of its marketing authorisations and trademarks for its products in Kenya and will continue to invest further in developing the Kenya market,'' the company said.

Cipla Limited is a global pharmaceutical company which uses technology and innovation to meet the healthcare needs of patients in various therapy areas.

For more than 70 years, Cipla has emerged as one of the most respected pharmaceutical names in India as well as across almost 170 countries. Cipla's turnover in 2013-14 was 1.7 billion.