Dr Reddy’s Laboratories has invested Rs 734 crore in in Dr Reddy’s and Nestle Health Science, its newly incorporated joint venture company with Nestle India for a 51 percent stake.

The FMCG giant has invested Rs 705.6 crore for a 49 percent stake in the Hyderabad-headquartered JV with a paid-up share capital of around Rs 1,440 crore.  The funds being infused towards subscription amount of the JV will be utilised by the newly formed company to acquire nutritional health solutions business or other resources from Dr Reddy’s and Nestle India.

The JV aims to leverage the capabilities and services of the Nestle Group and Dr Reddy’s to focus on the health and wellbeing space and grow their complementary nutraceuticals portfolios in the metabolic, hospitals nutrition, general wellness, women’s health and child nutrition in India and Nepal. Nestle will licence brands such as Nature's Bounty, Osteo Bi-Flex, Ester-C, Resource High Protein, Resource Diabetic to the JV.

As part of the agreement the JV company has already paid an upfront amount of Rs 821.7 crore for licencing Rebalanz, Celevida, Becozinc and others in the nutrition and OTC segments from Dr Reddy's.