Shilpa Medicare Limited, one of India’s leading integrated pharmaceutical groups, has made a major announcement that underlines its growing global ambitions. On 28th August 2025, the company revealed that its wholly owned subsidiary, Koanna International FZ LLC, UAE, has signed a definitive joint venture agreement with Pharma Pharmaceutical Industries & Biological Products (PPI), a leading Saudi Arabian pharmaceutical enterprise. The agreement aims to establish a new pharma manufacturing facility in Saudi Arabia, strengthening Shilpa’s presence in the Middle East and North Africa (MENA) region.

This strategic collaboration not only marks a new milestone in Shilpa Medicare’s journey but also plays a significant role in Saudi Arabia’s Vision 2030, which is focused on economic diversification and localisation of strategic industries, including healthcare. The joint venture highlights the increasing cooperation between Indian pharmaceutical companies and international partners, especially in regions where demand for quality healthcare solutions is growing rapidly.

Background of the Agreement

Shilpa Medicare has consistently positioned itself as a global pharmaceutical innovator with specialisation in Oncology and Non-Oncology APIs, Peptides, Polymers, New Biological Entities, and advanced formulations such as Orally Dispersible Films and Transdermal Patches. With multiple R&D centres and manufacturing facilities in India, the company has been steadily increasing its international footprint.

The partner in this joint venture, PPI (Pharma Pharmaceutical Industries & Biological Products), is a Riyadh-based enterprise founded in 1998. PPI has built a strong reputation in the manufacturing and distribution of pharmaceutical and biological solutions in Saudi Arabia and the wider MENA region. With a high-tech manufacturing base, research facilities, and market experience, PPI is well-positioned to collaborate with Shilpa Medicare in delivering high-quality medicines locally.

The JV agreement creates a new limited liability company in Saudi Arabia, with PPI holding 70% stake and Koanna International (Shilpa subsidiary) holding 30%.

Phased Execution Plan

The joint venture will be executed in two phases:

1. Phase One – Bulk Supply and Repackaging

   • Shilpa Medicare will supply finished formulations in bulk form.

   • These will be repackaged at the newly established JV company’s state-of-the-art facility in Saudi Arabia.

   • This ensures rapid market entry and allows Shilpa to capture demand in the Saudi pharmaceutical market quickly.

   • PPI will take the lead in establishing the facility with technical guidance from Shilpa Group.

2. Phase Two – Local Manufacturing and Technology Transfer

   • Shilpa Medicare will transfer manufacturing technology to the JV, enabling full-scale local production in Saudi Arabia.

   • The facility will be equipped with international standard infrastructure and packaging equipment.

   • Shilpa will also prepare the regulatory registration dossier in compliance with the Saudi Food and Drug Authority (SFDA) and will spearhead the process of obtaining market authorization.

This step-by-step approach ensures both immediate market presence and long-term manufacturing capability within the Kingdom.

Strategic Significance

The collaboration with PPI has multiple advantages:

• Strengthening Shilpa’s global footprint: This JV enhances Shilpa Medicare’s presence in the MENA region, which is increasingly becoming a strategic hub for healthcare investments.

• Boosting Saudi Arabia’s Vision 2030 goals: By enabling local production, the JV supports Saudi Arabia’s efforts to localise pharmaceutical manufacturing and reduce dependence on imports.

• Technology transfer and expertise sharing: Shilpa Medicare’s advanced R&D and manufacturing know-how will be integrated into Saudi Arabia’s healthcare infrastructure.

• Market expansion: The JV ensures that Shilpa’s innovative products will become more accessible in Saudi Arabia and nearby markets.

Official Statements

Mr. Wael B Aldahhasi, Chairman of PPI, emphasised the importance of this collaboration:
“Partnering with Shilpa Group allows us to bring world-class manufacturing technology and expertise to the Kingdom. This initiative will accelerate our ability to meet the growing healthcare needs of Saudi Arabia with locally manufactured, high-quality medicines.”

Mr. Vishnukant Bhutada, Managing Director of Shilpa Medicare, expressed his optimism about the JV:
“We are excited to partner with PPI. This JV combines PPI's unmatched local strength with Shilpa’s innovative technology to improve healthcare in the Kingdom. PPI is the ideal partner to make our products more accessible. This JV underscores our commitment to Saudi Arabia and will consolidate our presence across the MENA region.”

Impact on the Healthcare Sector

Saudi Arabia has been rapidly expanding its healthcare sector in recent years, driven by population growth, rising demand for advanced treatments, and government-led reforms. With an increasing focus on oncology, chronic diseases, and biologics, the demand for advanced medicines is expected to rise significantly.

The JV aligns perfectly with this demand:

• By offering locally manufactured medicines, it reduces reliance on imports.

• The project ensures compliance with global quality standards, boosting patient confidence.

• It enhances Saudi Arabia’s pharmaceutical self-reliance while opening doors for Shilpa to serve other MENA countries through this hub.

Shilpa Medicare’s Expansion Strategy

This move is part of Shilpa Medicare’s broader global expansion strategy. The company has been increasingly focusing on:

• Strengthening its CDMO (Contract Development and Manufacturing Organisation) services to support global pharmaceutical partners.

• Expanding oncology formulations which remain a core growth driver.

• Developing innovative platforms like transdermal patches and orally dispersible films.

• Building partnerships with international companies for technology transfer and market access.

By setting up a JV in Saudi Arabia, Shilpa gains direct access to a high-potential market, while also positioning itself as a key pharma partner in the MENA region.

Conclusion

The joint venture between Shilpa Medicare Limited (through Koanna International FZ LLC) and PPI is a landmark development not only for the company but also for the pharmaceutical landscape in Saudi Arabia. It represents a blend of Indian innovation and Saudi market expertise, ensuring rapid market access, local manufacturing, and regulatory compliance.

This step will help Shilpa strengthen its global leadership, while also supporting Saudi Arabia in achieving its Vision 2030 healthcare objectives. With this JV, Shilpa Medicare is not just expanding its footprint—it is actively shaping the future of healthcare in one of the world’s most dynamic regions.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.