CVCI-backed Elder Pharma to form cosmetics JV with Japan’s Kose

Mumbai-based Elder Pharmaceuticals Ltd has signed an agreement with Japanese firm Kose Corporation to form a cosmetics-making JV called Kose Elder (India) Pvt Ltd. As per the agreement, Kose will hold 60 per cent stake in the JV and the rest 40 per cent will be owned by Elder Pharma.

Kose will focus on the Indian market through the JV for manufacturing and selling cosmetics within the country.

Nomura Securities Co. Ltd acted as the financial advisor to Elder and Corporate Catalyst India Pvt Ltd acted as the advisor to Kose Corporation on this deal.

Elder Pharma currently operates three manufacturing facilities in Maharashtra – at Nerul, Pawane and Patalganga. The company also claims market leadership in three therapeutic segments, namely, women’s healthcare, wound care and nutraceuticals. Its popular brands include Shelcal calcium supplement, Eldervit vitamin injection and Chymoral Forte pain reliever. The firm has a turnover of Rs 1,350 crore for FY12.

Citi Venture Capital International, along with other investors, put in $9.68 million in Elder Pharma back in 2005 and 2006. Last May, the company was planning to sell its nutrition products business but it did not fructify.

(Edited by Sanghamitra Mandal)

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