Hyderabad-based Natco Pharma said its board of directors has approved the incorporation of a subsidiary in Indonesia – Natco Lotus Farma – at an investment of up to $3 million.

Natco Pharma will initially invest $1 million for a 51 per cent stake in the subsidiary with the remaining 49 per cent to be held by PT Mitra Medis Exim, which is part of the Mitra Jaya Group, as co-promoter.

The subsidiary will sell pharmaceuticals in the Indonesian market and is aimed at giving Natco an entry into new geographies for growth and profitability, it said.

Natco Pharma informed the bourses that it expects the subsidiary to be set up by April 19, 2024.