Natco Pharma Ltd on Thursday said its board has approved setting up of a subsidiary in Indonesia with an investment of up to $3 million (nearly Rs 25 crore) for selling pharmaceutical products in that country.

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The new subsidiary — PT. NATCO Lotus Farma — will be a joint venture with Natco holding 51 percent and the balance stake 49 percent by PT. Mitra Medis Exim (MME), a part of Mitra Jaya Group, which is a 40-year-old multi-diversified group, as the co-promoter, the company said in a regulatory filing.

The company’s board approved the proposal at its meeting held on Thursday.

Natco will initially invest $1 million for a stake of 51 percent as capital contribution and balance will be invested as and when the funds are required by the subsidiary, it added.

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PT. NATCO Lotus Farma will be engaged in selling pharmaceutical products in Indonesia, it added.

MME is in the business of distribution for active pharmaceutical ingredients and excipients for end-users in Indonesia.

On the rationale behind the step, Natco said,”(The) objective is to enter new geographies for growth and increased profitability.”

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(Edited by : Vivek Dubey)