Eyeing expansion, Pakistan’s Citi Pharma Limited said that it is planning to establish a multi-million dollar, wholly-owned, subsidiary in Uzbekistan, reports BC.
The company has signed an agreement with the Deputy Governor Namangan Region, Uzbekistan to establish a wholly-owned subsidiary of the company in Uzbekistan, informed Citi Pharma in its filing to the Pakistan Stock Exchange on Thursday.
“This venture will enable the company to produce syrups, liquids, psychotropic products, general section etc,” read the statement.
Citi Pharma informed that, subject to regulatory approvals, the said project shall be completed within one year. “The project will be undertaken at a total project cost of $3 million whereby Citi Pharma would contribute $1 million as equity while local/ international banks at Uzbekistan will provide a long-term debt of $2 million at subsidised rates.”
The government of Uzbekistan has sanctioned a land area of 5 hectares (12.35 acres) free of cost. Furthermore, the underlying project would have a tax free status for a period of 10 years, the notice added.
“This intended subsidiary company will be producing the substitute of the formulations products which Uzbekistan is currently importing from different countries,” said Citi Pharma.
