PI Industries, Polymath Holding decide not to pursue intended joint venturesPIIND - 3817 Change: -48.25 (-1.25 %)
News: PI Industries and Polymath Holding mutually have decided not to pursue the intended joint ventures and record termination of the joint venture agreements. Earlier in October 2021, PI Industries announced execution of two joint venture agreements with Polymath Holding. The first joint venture was executed to undertake the business of manufacturing and selling the products for bio chemistry. Meanwhile, the second was formed to undertake the business of manufacturing and selling the bio-chemical enabled pharmaceutical intermediates.
Views: The company has been struggling to make a move in the pharma business for a long time. Post ending an agreement with Indswift and now with Polymath, we expect development of meaningful portfolio in the pharma domain to take a long time unless it is able to diversify inorganically as early as possible. The management foresees around 20% revenue contribution from pharma domain over the medium to long run, which we expect to be achieved through inorganic route only.