Omega Pharma enters India through Modi-Mundipharma JV

Omega Pharma plans to invest 2 mn euros in the Modi Omega Pharma (India) joint venture.

The Belgian firm Omega Pharma has entered into a joint venture with the Indian pharmaceutical group Modi-Mundipharma by investing 2 million euros.

Omega Pharma is planning to make a foot-hold in the rapidly emerging Indian market through partnering Modi-Mundipharma.

The Modi Omega Pharma (India) –the Omega-Modi-Mundipharma joint venture –is expected to sales of 2 million euros ($2.6 million) in 2010.

“Omega Pharma was looking for a partner with in-depth knowledge of the Indian market and the required expertise in manufacturing (over-the-counter) products,” Omega Pharma Chief Executive Marc Coucke said in a statement.

Omega is planning to move some of its manufacturing activities to Modi-Mundipharma (which has a WHO-GMP certificate) and the Modi-Revlon cosmetics plant, both in India. Modi-Mundipharma is currently also completing the construction of a new pharmaceutical plant, especially for this Indian joint venture.

Omega Pharma, which sells non-prescription products to pharmacies, will outsource production of these and other products to Modi-Mundipharma.

Omega Pharma and Modi-Mundipharma will contribute 1 million euros each to Modi Omega Pharma’s starting capital. Later, they will each put up another 1 million euros, likely within the first two years of operation, Van Raemdonck said.

Profits from the new Modi Omega Pharma (India) will be split evenly between Omega Pharma and India’s Modi-Mundipharma. Omega Pharma and Modi-Mundipharma will each take 50 percent of the new firm’s profits.

Modi Omega Pharma’s sales are expected to reach 200,000 euros in 2009 and 2 million euros in 2010, Omega Pharma spokesman Chris Van Raemdonck stated.

With starting capital of 2 million euros, Modi Omega Pharma  is planning to bring eight Omega Pharma brands  include Addax (skin care), Calcia (calcium supplements), Cellasene (anti-cellulite, slimming), Charbon de Belloc (anti-flatulation), Paranix (anti-headlice), Restiva (prevention of hair loss), Salvecol (cholesterol reducer), and Silence (antisnoring) – to India by April 2010.

They will introduce the products to 6,000 physicians and 10,000 pharmacies and other retail outlets.

Omega Pharma has operations in almost 40 countries and an annual turnover exceeding 800 million euro. Omega Pharma is one of the few companies dealing solely in OTC products and is poised to enter the worldwide. Top ten ranking in the market for over-the-counter medicines and personal care products.

Modi-Mundipharma is a 50/50 joint-venture between the Umesh Modi Group and Mundipharma, which is active in the health and beauty care market in India. The company has various divisions, including Modi-Revlon in the cosmetic sector.

Mundipharma has achieved a turnover of approximately 3.5 billion dollars in 2008.