Akums Drugs and Pharmaceuticals, a leading contract development and manufacturing company in India, has signed a framework agreement with the Government of the Republic of Zambia to establish a local manufacturing facility in the country and supply essential medicines.

With the new facility, the company aims to support Zambia’s national health programs and enhance its local production capabilities.

The project will be implemented through the incorporation of a new joint venture company in Zambia, in which Akums will be a majority partner owning a 51 percent stake and a nominated Zambian state instrumentality owning a 49 percent stake. Both the JV partners will jointly invest in the facility and commercial operations in the ratio of their respective shareholding.

The plant, expected to commence operations in 2028, will manufacture general oral solids, liquids, injectables, and beta-lactam products. In the future, it also plans to export to neighbouring countries such as Zimbabwe, Namibia, Botswana, Malawi, Tanzania, and Mozambique.

Until the manufacturing facility becomes operational, the Zambian government, through its state instrumentality, has committed to purchase medicines worth a minimum aggregate value of USD 50 million over two years (USD 25 million annually in 2026 and 2027) from the joint venture company. These products will be manufactured and supplied from Akums’ facilities in India and/or those of its subsidiaries. The joint venture is expected to be established by the end of 2025.

As part of the collaboration, Akums has agreed to provide its proprietary technology, know-how, and technical expertise to the joint venture, and the parties intend to enter into a separate technology transfer agreement.

The supply agreement, joint venture agreement, and technology transfer agreement—ancillary to the framework agreement executed on August 22, 2025—are expected to be finalised by the end of September 2025.