Bangalore-based biotech company Avesthagen Ltd has signed a joint venture agreement with Uxmal SA of Chile to promote research and development (R&D) of bioactives, a top official said in Chennai on Friday (March 20). The JV is to be known as Avesthagen Latam and to be based in Santiago. It will be funded through a mix of equity and a Chilean government grant, Avesthagen Chairperson and Managing Director Villoo Morawala Patel said.

 

The Indian company will hold 75 percent holding in the Santiago-based Avesthagen Latam. The rest 25% of holding will be with Uxmal. In the very first-year of the JV about $3.8 million would be required out of which 40 percent would be through grants. Managing Director of Uxmal, Manuel Gidekel said that, the JV will promote bioactive ingredients for commercialization and its use in functional foods, healthcare products and cosmetics.

 

Earlier, Avesthagen had plans to expand its operations beyond R&D activities. The company had a plan to generate Rs.6-billion through initial public offering (IPO) for developing molecules, manufacturing and marketing of their products. However, those plans were put on hold as the market sentiments were negative due to global recession.