Nestlé India and Dr. Reddy’s Collaborate to Expand Nutritional Health Solutions

On April 25, 2024, Dr. Reddy’s Laboratories Limited informed the stock exchanges that Nestlé India and the company are to form a joint venture to take the health science nutraceutical portfolio to consumers across India and other agreed territories.

Details of the Partnership

Nestlé India Limited and Dr. Reddy’s Laboratories Ltd announced that they have entered into a definitive agreement to form a joint venture to bring innovative nutraceutical brands to consumers in India and other regions.

The collaboration will bring together the prominent global range of nutritional health solutions as well as vitamins, minerals, herbals and supplements of Nestlé Health Science (NHSc) with the strong and established commercial strengths of Dr. Reddy’s in India. The joint venture will help both companies combine their strengths and grow their complementary nutraceutical portfolios in categories including hospital nutrition, metabolic, women’s health, child nutrition and general wellness for consumers across India.

Dr. Reddy’s Laboratories stated that the joint venture company will be headquartered in Hyderabad and will leverage the capabilities as well as services of the Nestlé Group and Dr. Reddy’s.

Select brands will be licensed by Nestlé India Limited and Dr. Reddy’s Laboratories Ltd to the JV company. The Nestlé Group will license brands such as Osteo Bi-Flex, Nature’s Bounty, Resource High Protein, Ester-C, Optifast, Peptamen, Resource Diabetic, Resource Dialysis and Resource Renal. Dr. Reddy’s will license brands like Celevida, Rebalanz, Kidrich-D3, Becozinc and Antoxid in the nutrition and OTC segments. The JV company is expected to become operational in the second quarter of FY 2025.

Speaking about the joint venture, the Chairman and Managing Director of Nestlé India, Mr Suresh Narayanan, said, “I am very happy to share that we are entering into a joint venture with Dr. Reddy’s Laboratories Ltd. We have been on a journey where we strive to add value to the lives of our consumers through powerful brands and products.”

He further added, “This joint venture is another important step in that direction, allowing us to bring our science-backed nutritional solutions to more people across the country. Dr. Reddy’s is a trusted name in the pharmaceutical space and shares our commitment to providing access to high-quality products. This joint venture will enable us to build a robust retail and distribution network to take our brands closer to consumers and make a meaningful difference to improve the quality of life.”

The CEO – Branded Markets (India & Emerging Markets) of Dr. Reddy’s, M.V. Ramana, said, “This joint venture is a novel approach by two companies that have a shared purpose of good health. We are pleased to partner with Nestlé India to bring innovations from the Nestlé Health Science global portfolio to consumers in India. This novel approach of leveraging mutually complementary strengths of both parent companies will enable better access and affordability for consumers.”

On April 25, 2024, the share price of Nestlé India Ltd opened at ₹2,519.95, touching the day’s high at ₹2,552.25, as of 12:51 PM on the NSE. And the share price of Dr. Reddy’s Laboratories Ltd opened at ₹5,975.05, touching the day’s high at ₹6,032.75, as of 12:53 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.