Akums Drugs & Pharma has taken a significant step in its international expansion strategy by incorporating a joint venture company in Zambia. The new entity, named Akums Healthcare (Zambia) Private Limited, received its certificate of incorporation on October 13, 2025, marking a pivotal moment in the company's growth trajectory.

Key Details of the Joint Venture

This development follows a series of strategic disclosures made by Akums Drugs & Pharma, indicating a well-planned approach to its international ventures. The company had previously made announcements regarding this initiative on October 18, 2024, and August 22, 2025, showcasing a methodical progression towards establishing its presence in the African pharmaceutical market.

Regulatory Compliance and Transparency

In adherence to regulatory requirements, Akums Drugs & Pharma promptly informed the National Stock Exchange of India Ltd and BSE Limited about this significant corporate action. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency and regulatory compliance.

Strategic Implications

The establishment of Akums Healthcare (Zambia) Private Limited represents a strategic move by Akums Drugs & Pharma to tap into the growing pharmaceutical market in Africa. This joint venture could potentially:

• Expand the company's geographical footprint
• Provide access to new markets in the African continent
• Leverage local partnerships to navigate the Zambian business landscape
• Introduce the company's pharmaceutical products to a new customer base

While the specific details of the joint venture's operations and ownership structure have not been disclosed, this move signals Akums Drugs & Pharma's intent to diversify its business and explore growth opportunities beyond its home market.

As the pharmaceutical industry continues to evolve globally, such international expansions could play a crucial role in companies' long-term growth strategies. Stakeholders will likely be keen to observe how this joint venture unfolds and contributes to Akums Drugs & Pharma's overall business performance in the coming years.

Akums Drugs & Pharma , a leading Indian contract development and manufacturing company, has taken a significant step towards expanding its presence in Africa. The company executed a Framework Agreement with the Government of the Republic of Zambia on August 22, 2025, to establish a local manufacturing facility in the country.

Key Highlights of the Agreement

• Joint Venture Structure: The project will be implemented through a joint venture company in Zambia, with Akums holding a 51% majority stake and a Zambian state instrumentality owning the remaining 49%.

• Manufacturing Commencement: The facility is expected to begin operations in 2028, focusing on the production of general oral solids, liquids, injectables, and beta-lactam products.

• Interim Supply Agreement: Until the facility becomes operational, the Government of Zambia will purchase medicines worth a minimum of USD 50.00 million over two years (2026-2027) at USD 25.00 million annually from Akums' facilities in India.

• Joint Venture Timeline: The joint venture is expected to be established before the end of 2025.

Strategic Objectives

The collaboration aims to achieve several strategic objectives:

1. Support Zambian national health programs
2. Enhance local production capabilities in Zambia
3. Potentially export to neighboring African countries, including Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique

Technology Transfer

Akums has agreed to provide its proprietary technology, know-how, and technical expertise to the joint venture through a separate Technology Transfer Agreement, which is expected to be signed by the end of September 2025.

Market Expansion

This move represents a significant opportunity for Akums to expand its business in African countries and capture a sizeable market share. The company's expertise in pharmaceutical innovation and excellence is expected to contribute to improving healthcare infrastructure in Zambia and potentially in the broader region.

Regulatory Compliance

The agreement has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) 2015.

This strategic partnership between Akums Drugs and the Zambian government marks a significant step towards enhancing pharmaceutical manufacturing capabilities in Africa and improving access to essential medicines in the region.