Delhi-based pharmaceutical company Akums Drugs and Pharmaceuticals Limited has announced a strategic partnership with the Government of the Republic of Zambia to establish a manufacturing facility in Zambia, marking the company's first international manufacturing venture. The joint venture aims to provide high-quality and affordable generic medicines for patients in Zambia while reducing the country's dependency on pharmaceutical imports.
Joint Venture Structure and Investment
The partnership will involve setting up a state-of-the-art manufacturing facility through a newly formed joint venture company headquartered in Zambia. Akums will hold a 51% majority stake, while the Government of Zambia, through its nominated state instrumentality, will hold the remaining 49%. Both partners will contribute to the establishment and operationalization of the facility in proportion to their shareholding ratios.
The joint venture will be managed by a board with representatives from both partners. The JV is expected to be established by Q3 FY 26, after which construction of the facility will begin. Commercial supplies from the facility are anticipated to commence in Q3 FY 28, subject to timely establishment of the facility and regulatory approvals for both the facility and products.
Manufacturing Capabilities and Market Potential
The facility will manufacture a comprehensive range of pharmaceutical products, including general oral solids, tablets, hard gelatin capsules, liquids, injectables, and beta-lactam products. This diverse manufacturing capability is designed to address Zambia's healthcare needs while positioning the facility for regional expansion.
Zambia represents a significant growth opportunity, with the country being one of the fastest-growing economies in Africa. GDP growth is expected to exceed 6% in 2025, while Zambia's pharmaceutical market is projected to expand by over 10% annually over the next five years, surpassing $300 million by 2030. Currently, over 75% of Zambia's essential medicines are imported, highlighting the strategic importance of this local manufacturing initiative.
Government Procurement Commitment
To support current national healthcare needs during the facility's development phase, the Government of Zambia has committed to purchasing essential medicines from Akums' existing facilities in India. The supply agreement guarantees a minimum purchase of $25 million annually in calendar years 2026 and 2027, totaling $50 million over the two-year period.
Regional Export Strategy
Beyond serving the Zambian market, the facility plans to export to neighboring countries in the southern half of the African continent, including Botswana, Malawi, Mozambique, Namibia, Tanzania, and Zimbabwe. This regional expansion strategy targets SADC countries with a combined population of over 450 million and a fast-growing pharmaceutical market.
"We are proud to partner with GRZ to deliver high quality, affordable medicines manufacturing for Zambian healthcare system. This is our first manufacturing partnership outside India and aligns with vision of becoming a global CMDO," said Sanjeev Jain, Managing Director at Akums.
Company Performance and Market Position
Akums Drugs and Pharmaceuticals Limited is India's largest contract development and manufacturing organization (CDMO). The company operates 11 manufacturing facilities in India for its CDMO formulation business and two manufacturing units for API manufacturing. Akums manufactures over 4,000 formulations across 60+ dosage forms and maintains four state-of-the-art R&D centers with over 1,000 DCGI approvals and 250+ first-time-in-India approvals.
In its most recent quarterly results, the company recorded a net profit of ₹63.48 crore in the quarter ended June 2025, representing a 5.50% increase from the previous cycle's ₹60.17 crore. Sales rose 0.48% to ₹1,024.03 crore during the same period.
