Nestlé India in a BSE filing on Thursday said it has invested ₹705.6 crore in the joint venture with Dr Reddy’s Laboratories Ltd, which has been established to operate in the nutritional health solutions space. It will offer a range of products in categories including medical nutrition, specialized nutrition, nutraceuticals, vitamins, minerals, herbals and supplements. Nestle India will own 49 per cent equity in the JV while Dr Reddy’s Labs will own 51 per cent share.
“Nestlé India has subscribed 70,55,51,000 equity shares of ₹10/- each, at par, of the JV Company, on Rights basis. Post acquisition of aforesaid equity shares,........ Nestlé India continues to hold 49 per cent shareholding, comprising of 70,56,00,000 equity shares of the face value of ₹10/- each and DRL also continues to hold 51 per cent shareholding, comprising of 73,44,00,000 equity shares of the face value of ₹10/- each,” the company said in a BSE filing.
The company added that it has executed a Business Transfer Agreement for the slump sale of its existing medical nutrition and nutraceuticals (“NHSc”) Business to the JV Company, at a lumpsum consideration of ₹218.90 crore.
Meanwhile, Dr Reddy’s Laboratories said that it has made an investment of ₹734.3 crore in the JV Company formed with Nestle India. “The subscription amount shall be utilized by the JV Company, to inter-alia acquire the respective nutritional health solutions business and/ or other resources from the JV Partners as per the Joint Venture Agreement and for general corporate purpose including working capital requirements of the JV Company,” the BSE filing added.