Akums Drugs and Pharmaceuticals Ltd signs framework agreement with Government of Zambia

Akums Drugs and Pharmaceuticals Limited (hereinafter referred to as "Akums") has executed a Framework Agreement on 22nd August, 2025 with Government of the Republic of Zambia ("hereinafter referred to as "GRZ") to establish a local manufacturing facility in Zambia and to undertake the manufacturing and supply of Medicines in Zambia, with the objective of supporting GRZ national health programs and enhancing local production capabilities in Zambia. The facility, in the future, also plans to export to neighboring countries including, but not limited to, Zimbabwe, Namibia, Botswana, Malawi, Tanzania, Mozambique etc.

This Project shall be implemented through incorporation of a new joint venture company in Zambia in which Akums will be a majority partner owning 51% stake and a nominated Zambian state instrumentality owning 49% stake.

The facility is expected to commence manufacturing in 2028. The facility plans to manufacture general oral solids, liquids, injectables as well as beta-lactam products. Both the JV partners will jointly invest in the facility and commercial operations in ratio of their respective shareholding. Further, until such time as the Manufacturing Facility will be established and becomes operational, the GRZ, through its state instrumentality, shall purchase Medicines from the Joint Venture Company having a minimum aggregate value of USD 50,000,000 (USD Fifty Million) over 2 years in 2026 and 2027, i.e. USD 25 million annually, which will be manufactured and supplied from Akums and/or its subsidiaries' facilities in India. The JV is expected to be established before the year end 2025.

The Supply Agreement, Joint Venture Agreement and Technology Transfer Agreement which are ancillary and incidental to the Framework Agreement executed on 22.08.2025, will be signed in due course of time preferably by end of September2025.

Shares of Akums Drugs and Pharmaceuticals Limited was last trading in BSE at Rs. 480.55 as compared to the previous close of Rs. 481.25. The total number of shares traded during the day was 4642 in over 303 trades.

The stock hit an intraday high of Rs. 485.75 and intraday low of 476.00. The net turnover during the day was Rs. 2236479.00.

Source : Equity Bulls

Keywords

AkumsDrugsandPharmaceuticals AKUMS INE09XN01023 FrameworkAgreement GovernmentofZambia