Business News

SCHOTT Forms Pharmaceutical Joint Venture in India

Friday 25. April 2008 - SCHOTT AG and KAISHA Manufacturers Private Ltd., an Indian company, announce the formation of a joint venture, SCHOTT KAISHA Private Ltd. The new joint venture will manufacture primary pharmaceutical packaging made of glass for the Indian market. The joint enterprise will have operations in Mumbai and Daman.

“With this double-digit million euro investment, SCHOTT continues on its course to growth and quality leadership. Additionally, we are securing our access to a very promising market,” says Professor Udo Ungeheuer, Chairman of the Board of Management of SCHOTT AG.

SCHOTT, the technology group based in Mainz, Germany, will hold a 50 percent share in the company and contribute its technological expertise in manufacturing high quality ampoules, vials, syringes and cartridges in a global environment. KAISHA will bring in its existing sites and manufacturing capacities.

SCHOTT and KAISHA have worked successfully for many years in a buyer-supplier relationship. SCHOTT supplied the pharmaceutical glass tubing to Kaisha for converting them into primary pharmaceutical packaging products. KAISHA is considered to be a quality leader in the Indian market with sales of 11 million euros in 2007.

The pharmaceutical packaging market in India is growing by approximately 10 to 15 percent per year, particularly in the higher quality segments, according to industry analysis. India has the largest number of U.S. Food and Drug Administration approved plants outside of the United States, for example. The joint venture will support Indian pharmaceutical companies in upgrading products for international markets by supplying pharmaceutical packaging at an international quality level from the Indian production site. For this purpose, SCHOTT KAISHA will build production capacity for StandardLine ampoules and vials, which will be in production in the fourth quarter 2009.

“The joint venture combines KAISHA’s local market expertise and access to customers with the technological know-how of SCHOTT,” explains Kairus Dadachanji, Managing Director of SCHOTT KAISHA. The company expects to see a quick increase in manufacturing capacity. The number of employees will grow in line with the company’s growth.

“Over the next 15 to 18 months, our Indian customers and the market will begin to experience the positive effects of this cooperation,” Dadachanji says. “Thanks to the close proximity to our customers and our high standards for quality, SCHOTT KAISHA will support the Indian pharmaceutical industry on the way towards reaching international quality standards as a strong partner.”