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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. ("Mitsui," Head office:Tokyo, President and CEO: Masami Iijima) and Otsuka Pharmaceutical Factory, Inc. ("OPF," Head Office: Tokushima Prefecture, President: Ichiro Otsuka) reached an agreement on December 7, 2012, to jointly acquire capital in a new IV products business company ("Claris Otsuka" - tentative name), to be established by a major Indian manufacturer and distributor of IV product and pharmaceuticals, Claris Lifesciences Limited ("Claris"), listed on Mumbai Stock Exchange.
Claris, which boasts high levels of technology and quality, is one of the leading manufactures and distributors of IV products and generic pharmaceuticals in India. After Claris transfer the IV products business to Claris Otsuka, and Mitsui and OPF will invest approximately 10.5 billion INR (approximately 15.5 billion JPY) in Claris Otsuka by underwriting a third party allocation of newly issued shares. The equity holding ratio in Claris Otsuka for each company will be; OPF: 60%, Mitsui: 20%, and Claris: 20%.
The Indian market for IV products is expected to benefit from demand expansion driven by economic growth and the improvement in middle class incomes, combined with the development of insurance systems and the increase in number of medical institutions. In the future, India is expected to become one of the world's biggest users of these products. Through Claris Otsuka, OPF, Japan's largest manufacturer of IV products, and Mitsui, a company that possesses established networks in India as well as other countries of the world, will join forces not only to meet the domestic demand in India, but will accelerate to meet the demand of IV nutrition products in the emerging countries through Claris' existing distribution network in 52 countries.
OPF has identified India, which is achieving rapid economic development, as one of the priority countries for its expansion overseas. By providing high quality basic solution products, and in the future, introducing new value-added clinical nutrition products to India, OPF will contribute to the advancement of medical care in India. OPF, under Otsuka Group's corporate philosophy, "Otsuka - people creating new products for better health worldwide," will contribute to the betterment of health of the people of India as well as people around the world.
Mitsui has determined that the medical and healthcare fields as key area of business, and in anticipation of expanding demand for pharmaceutical products in the emerging countries, is reinforcing its initiatives. Through the joint venture, with IV business partners, OPF and Claris, Mitsui aims to contribute to increase the quality of medical care in India and in other emerging countries.
New Joint Venture Company
|Company Name||Claris Otsuka Limited (tentative name)|
|Headquarters||Ahmedabad, Gujarat, India|
|Representative||Bharat Shah, CEO|
|Establishment||Planned for 2013|
|Number of Employees||Approximately 700|
|Capital (post investment)||10.524 billion INR (approximately 15.5 billion JPY)|
|Shareholdings (post investment)||Mitsui:20%, OPF:60%, Claris:20%|
|Business Activities||Manufacture and distribution of basic solution and clinical nutrition products|
|Business Area||India and 52 countries worldwide|
Claris LifeSciences Limited
|Headquarters||Ahmedabad, Gujarat, India|
|Representative||Arjun Handa, Managing Director & CEO|
|Capital||638 million INR (approximately 940 million JPY)|
|Number of Employees||1,250|
|Business Activities||Manufacture and distribution of pharmaceutical and nutrition products|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.