Akums Drugs and Pharmaceuticals Limited has informed the Exchange about Arrangements for strategic, technical, manufacturing, or marketing tie up
AKUMS · price
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Akums Drugs has signed a framework agreement with the Government of Zambia to set up a pharmaceutical manufacturing facility in Zambia through a new joint venture company. Akums will own 51% (majority partner) and a Zambian state agency will hold 49%. The local facility is expected to begin manufacturing in 2028 and will produce oral solids, liquids, injectables, and beta-lactam products, with future plans to export to neighbouring African countries like Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique. Until the Zambian facility is operational, the Zambian government has committed to purchasing a minimum of USD 50 million (USD 25 million annually) of medicines in 2026 and 2027 from Akums' Indian facilities. The JV is expected to be formally established by end of 2025, and Akums will also provide its proprietary technology and know-how through a separate Technology Transfer Agreement.
Positive for shareholders — the deal secures immediate export revenue of USD 50M over 2026-2027 and opens a long-term growth avenue into African pharmaceutical markets. The 2028 manufacturing timeline means significant capital commitment ahead of local revenue, but the guaranteed government purchase orders provide near-term earnings visibility.