According to a release issued by Dishman to the BSE on Monday, the land will cost approximately $4 million out of which 50 per cent is payable after obtaining the business licence and the balance 50 per cent within two years of the agreement.
"The company intends to start production of quats and intermediates in the first phase, and contract manufacturing facilities, including USFDA-compliant API plants, in the second phase within two years. The total first phase investment will be $10 million," the release added.
Dishman has also signed a joint venture with Arab Company for Drug Industries and Medical Appliances and Takamul Holding Company for Investments, a division of Saudi Arabia-based Capital Advisory Group.
"The equity of the JV firm will be held by the company, THC and ACDIMA in the ratio of 35 35 per cent and 30%, respectively. The JV will start work on the construction of production facility immediately," the release added.
The company has initiated dialogue with several Japanese companies to produce generic APIs for the domestic market.
"The company will provide the necessary technologies to the Japanese firms. The arrangement will be either in the form of a joint venture or long-term intermediate supply agreements against technology transfer as a preferred suppler," the release said.