Dr Reddy's will hold 51 per cent stake, while Nestle India will hold 49 per cent stake in the joint venture with proportionate shareholder rights of voting, dividend distribution and other economic rights, Nestle India said in a statement.
Nestle India will have a call option to increase its shareholding to 60 per cent after six years at fair market value. Nestle India said that Dr Reddy's will retain at least 40 per cent shareholding after the company exercises the call option.
Subject to customary closing conditions, the joint venture is expected to be operational in the second quarter of FY 2024-25.
Meanwhile, Nestle India's total income rose 8.84 per cent to Rs 5,294.34 crore in Q4, compared to Rs 4,864.22 crore in the same period last fiscal.
“We have seen strong growth momentum across our product portfolio due to a combination of pricing and mix,” said Suresh Narayanan, president and managing director, Nestlé India.
Nestle India will have a call option to increase its shareholding to 60 per cent after six years at fair market value. Nestle India said that Dr Reddy's will retain at least 40 per cent shareholding after the company exercises the call option.
Subject to customary closing conditions, the joint venture is expected to be operational in the second quarter of FY 2024-25.
Meanwhile, Nestle India's total income rose 8.84 per cent to Rs 5,294.34 crore in Q4, compared to Rs 4,864.22 crore in the same period last fiscal.
“We have seen strong growth momentum across our product portfolio due to a combination of pricing and mix,” said Suresh Narayanan, president and managing director, Nestlé India.
