April 28, 2009 / 12:45 PM / 11 years ago

UPDATE 1-Omega Pharma to invest 2 mln euros in Indian JV

* To launch Indian joint venture with Modi-Mundipharma

* New co’s sales seen at 0.2 mln euros in 2009, 2 mln in ‘10

* Omega Pharma has agreed to total investment of 2 mln euros

* Omega to move some manufacturing to Modi-Mundipharma

(Adds details, CEO quotes)

BRUSSELS, April 28 (Reuters ) - Health products firm Omega Pharma OMEP.BR agreed with an Indian pharmaceutical group to create a joint venture on the sub-continent that should make sales of 2 million euros ($2.6 million) in 2010.

For a total investment of 2 million euros, the move will give Belgium’s Omega Pharma its first crack at the Indian market, the Belgian company said on Tuesday. Profits from the new Modi Omega Pharma (India) will be split evenly between Omega Pharma and India’s Modi-Mundipharma.

“Omega Pharma was looking for a partner with in-depth knowledge of the Indian market and the required expertise in manufacturing (over-the-counter) products,” Omega Pharma Chief Executive Marc Coucke said in a statement.

Modi Omega Pharma’s sales should total 200,000 euros in 2009 and 2 million euros in 2010, Omega Pharma spokesman Chris Van Raemdonck said. Omega Pharma and Modi-Mundipharma will each take 50 percent of the new firm’s profits.

Under the terms of the deal, Modi Omega Pharma — with starting capital of 2 million euros — will bring eight Omega Pharma brands to India by April 2010.

Omega Pharma and Modi-Mundipharma will contribute 1 million euros apiece to Modi Omega Pharma’s starting capital and have agreed to each put up another 1 million euros later, likely within the first two years of operation, Van Raemdonck said.

Modi Omega Pharma will initially sell Omega Pharma’s products that include skin care, hair care, anti-snoring, anti-flatulence and anti-headlice treatments.

Omega Pharma, which sells non-prescription products to pharmacies, will outsource production of these and other products to Modi-Mundipharma, which is building a plant specifically for the joint venture.

Omega Pharma’s shares traded down 1.5 percent at 19.90 euros as of 1202 GMT. (Reporting by Anne Jolis; Editing by David Holmes) ($1=.7683 euro)

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