Valencia Beverages Forms Manufacturing Agreement with Virchow Laboratories for Juice Portfolio

Valencia Beverages Forms Manufacturing Agreement with Virchow Laboratories for Juice Portfolio​

Valencia Beverages, a subsidiary of Valencia Nutrition Limited, has finalized a definitive business agreement with Virchow Laboratories Ltd. This strategic manufacturing accord covers the production of Virchow Laboratories' entire juice product portfolio.

The agreement mandates the manufacturing of 8 Stock Keeping Units (SKUs). These variants include Mango, Guava, Apple, Pomegranate, Coconut, Litchi, Banana, and Mixed Fruit. Under the terms established, a committed monthly production volume has been secured, amounting to approximately 15% of the installed capacity at Valencia Beverages Unit II in Hyderabad.

This strategic partnership is noted as a major milestone for Valencia in its specialized beverages manufacturing capabilities. By utilizing Virchow Laboratories' organizational strength, the collaboration aims to accelerate Valencia's learning curve in production efficiency while simultaneously boosting demand for Valencia's beverage offerings. The arrangement supports Valencia's long-term goal of expanding market presence and strengthening its product portfolio through scalable manufacturing sources, which is also expected to enhance capacity utilization at the Hyderabad facility.

Valencia Nutrition Limited, incorporated in April 2013, focuses on the development, manufacturing, and distribution of innovative nutrition and beverage products, emphasizing quality, health, and consumer satisfaction. Currently, the company conducts manufacturing operations from its two beverage Plants in Hyderabad and utilizes several contract manufacturers across South India.

Virchow Laboratories Limited is reported as the world's largest producer of Sulfamethoxazole, with an annual output reaching 4,000 MT. The company produces critical high purity raw materials and intermediates, such as Sodium Methoxide, Isoxamine, and N-Acetyl Sulfanilyl Chloride, in dedicated production facilities for Sulfamethoxazole. Virchow has served as a preferred supplier of Sulfamethoxazole to Glaxo Smithkline, Hoffmann La Roche, Shionogi & Company, and various US generic manufacturers after being audited by them.

Stock Price Movement​

For Valencia Nutrition Ltd, the shares settled at ₹51.40 on Wednesday, completing the day with a strong jump of 9.36%. Throughout the session, the stock remained completely flat, holding steady at an intraday range of ₹51.40.

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