Nestlé India has formed a joint venture with Dr Reddy’s Laboratories to sell its global range of nutritional health solutions as well as vitamins, minerals, herbals and supplements.
The joint venture, to be based in Hyderabad, will aim to widen the reach of Nestlé's nutritional solutions to customers across the country by leveraging Dr Reddy’s retail and distribution network.
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Dr Reddy’s will hold a 51 percent stake in the joint venture, with Nestlé India holding the rest. Nestlé India will have the option to increase its shareholding to up to 60 percent after six years, while Dr Reddy’s will retain a minimum of 40 percent shareholding even after Nestlé India exercises its call option, the company said in a statement on April 25.
"We have been on a journey striving to add value to the lives of our consumers through powerful brands and products. This joint venture marks another significant step in that direction," said Suresh Narayanan, chairman of Nestlé India.
The partners will license specific brands to the joint venture. Nestlé will license brands such as Nature's Bounty, Osteo Bi-Flex, Ester-C, Resource High Protein, Optifast, Resource Diabetic, Peptamen, Resource Renal, and Resource Dialysis.
Dr Reddy's will license Rebalanz, Celevida, Antoxid, Kidrich-D3, and Becozinc in the nutrition and OTC segments.
The joint venture is expected to start operations in the second quarter of FY25.
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“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,” said MV Ramana, CEO – branded markets (India & Emerging Markets), at Dr Reddy’s.
Nestlé Health Science owns brands such as Impact, Boost and Compleat, which help provide nutrition and healthier lives to consumers. Its most recent acquisition, in 2013, was Pamlab, which specialises in medical food products for use under medical supervision in the nutritional management of patients with mild cognitive impairment, depression and diabetic peripheral neuropathy.
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