Akums Drugs and Pharmaceuticals Limited has executed a Framework Agreement with Government of the Republic of Zambia (GRZ) to establish a local manufacturing facility in Zambia and to undertake the manufacturing and supply of Medicines in Zambia, with the objective of supporting GRZ national health programs and enhancing local production capabilities in Zambia. The facility, in the future, also plans to export to neighboring countries including, but not limited to, Zimbabwe, Namibia, Botswana, Malawi, Tanzania, Mozambique etc.

This project shall be implemented through incorporation of a new joint venture company in Zambia in which Akums will be a majority partner owning 51% stake and a nominated Zambian state instrumentality owning 49% stake.

The facility is expected to commence manufacturing in 2028. The facility plans to manufacture general oral solids, liquids, injectables as well as beta-lactam products. Both the JV partners will jointly invest in the facility and commercial operations in ratio of their respective shareholding.

Further, until such time as the Manufacturing Facility will be established and becomes operational, the GRZ, through its state instrumentality, shall purchase Medicines from the Joint Venture Company having a minimum aggregate value of US$ 50 million over 2 years in 2026 and 2027, i.e. US$ 25 million annually, which will be manufactured and supplied from Akums and/or its subsidiaries' facilities in India. The JV is expected to be established before the year end 2025.