Shares of Akums Drugs and Pharmaceuticals Ltd fell 1.5% on 25th August after touching a day’s high of Rs 491.95. This occurred despite the company announcing plans to set up a manufacturing facility in Zambia.

The firm announced on 22nd August that it has signed an agreement with the Government of Zambia to establish a local manufacturing facility. The project will focus on producing oral solids, liquids, injectables, and beta-lactam products. Completion is targeted by 2028.

Akum-Zambia Joint Venture

The facility will be developed under a joint venture. Akums will hold a 51% majority stake and the Zambian government will own the remaining 49%. Both parties will invest in the project in proportion to their shareholdings.

Future Expansion Plans

As part of the agreement, the Zambian government will purchase medicines worth $50 million over 2026 and 2027 (USD 25 million annually) from Akums and its subsidiaries in India. The facility also aims to support Zambia’s national health programmes and boost local production. It will also expand exports to Southern African nations, including Botswana, Malawi, Mozambique, Namibia, Tanzania, and Zimbabwe.

Akums Drugs Q1 Results

For Q1 FY2025, Akums reported a net profit of Rs 63.48 crore, up 5.50% from Rs 60.17 crore a year earlier. Sales rose marginally by 0.48% to Rs 1024.03 crore.

At 11:31 AM, the shares of Akums Drugs were trading 1.55% lower at Rs 472.60 on NSE.

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