The new unit of the Indonesian firm will sell a range of products, but no prescription drugs.
ndonesian pharmaceutical producer PT Kalbe Farma said on Friday it would establish a business unit in the Philippines to expand its global market reach.
Kalbe Farma, through subsidiary Kalbe International Pte. Ltd, signed on May 17 a deal with the Philippines' Ecossential Foods Corp (ECO) to form a joint venture firm to market all products, apart from prescription drugs, in the country.
ECO specializes in the distribution of fast-moving consumer goods.
The two companies are still in the process of establishing the joint venture, publicly listed Kalbe said in a filing with the Indonesia Stock Exchange (IDX).
“The Philippines has strong market potential for Kalbe Farma,” said the company.
Kalbe Farma will own 60 percent of the joint venture firm and ECO the remaining 40 percent. The two firms plan to inject 130 million Philippine pesos (US$2.48 million) in initial capital. Kalbe will finance its share using cash.
The joint venture is part of Kalbe’s plan to strengthen its foreign market presence this year, specifically in Myanmar, the Philippines, Sri Lanka, Nigeria, Malaysia and Cambodia, as it seeks to raise the contribution of exports to between 5 and 6 percent of its total revenue, up from 4.8 percent last year.
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