Nestle India Transfers Medical Nutrition Business to Dr Reddy’s JV for ₹218.9 Crore

Nestle India Ltd has transferred its medical nutrition and nutraceuticals business to its joint venture with Dr Reddy’s Laboratories Ltd for ₹218.9 crore.

This move aligns with their strategic partnership, formed earlier this year, to innovate and expand their nutraceutical offerings in India and other markets.

The joint venture, now known as Dr Reddy’s and Nestle Health Science Ltd (previously Dr Reddy’s Nutraceuticals Ltd), is focused on broadening its product range across various segments, including metabolic health, hospital nutrition, general wellness, women’s health, and child nutrition.

In addition to the business transfer, Nestle India has invested ₹705.55 crore in the joint venture by purchasing 70.55 crore equity shares at ₹10 each through a rights issue. Following this investment, Nestle India will hold a 49% stake in the joint venture, while Dr Reddy’s Laboratories will retain a 51% stake.

The capital raised will be used for acquiring additional nutritional health solutions and supporting general corporate needs.

As of 1:30 PM on Friday, Nestle India shares were trading 1.1% higher at ₹2,511 on the NSE, while Dr Reddy’s Laboratories shares saw a 0.78% increase to Rs 6,941.