Elder Pharma enters into JV with Kose Corp

Domestic pharma player, Elder Pharmaceuticals today said it has entered into an agreement with Kose Corporation of Japan to form a JV company to manufacture and sell cosmetics in the market.

The new entity will be known as Kose Elder (India) Pvt Ltd, a company statement said here. Under the JV agreement, Kose will focus on the domestic market for manufacturing and selling cosmetics in India.

The JV will have 60 percent holding by Japanese partner while the Elder will hold remaining 40 percent, the release said.

 Elder has successfully established and run subsidiaries abroad and with alliance with KOSE, Elder is foraying into its maiden joint venture arrangement in India with a Japanese company, Elder Pharma Joint Managing Director Alok Saxena said.

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KOSE's key means of advancing into overseas markets up to now has been to export from Japan only those of its existing brand products that matched the requirements of the target country's market, but in India, where culture and tastes are very different, they have considered it essential to undertake strategic and business planning tailored to the region, and are proceeding with investigations through agreements with local enterprises that are familiar with the markets.

"Elder's thorough knowledge of local markets and strong sales network within India will be synergized with KOSE's strengths of technological prowess and creation of high value added cosmetics through this joint venture. The aim is to develop new products assimilating Japan's refined, advanced technology with the universal aesthetic demanded by the Indian woman, and to expand in the Indian market, Saxena said.

 Once the joint venture is established, the parties will consider the details of sharing tasks between the two companies and specifics such as sales channels, products, and brands for the Indian Market, he said.  Tokyo headquartered Nomura Securities Co. Ltd. acted as the financial advisor to Elder for the JV with KOSE.