Aurobindo Pharmaceuticals Ltd, the Rs.1050-crore bulk drug manufacturing company bought the 50 per cent equity stake in the Chinese joint venture, Aurobindo Tongling (Datong) Pharmaceuticals Co Ltd, making it a wholly owned subsidiary of the company.

The joint venture was set up by Aurobindo with Shanxi Tongling Pharmaceuticals Co Ltd (STPCL), the local partner for the manufacture of bulk drugs and intermediates for Cephalosporin for the Chinese market some time ago.

The 50 per cent stake of the Chinese partner was purchased by Aurobindo's subsidiary in China, Aurobindo (Datong) Bio-Pharma Co Ltd. Aurobindo Pharma initially invested $ 5 million in this JV. "A local partner will help in understanding that market better. Now that we know the Chinese market well, a subsidiary will help get more revenue than a JV," according to Srinivas Lanka, Director of the company.

Aurobindo (Datong) Biopharma Co Ltd, a 100 per cent subsidiary of Aurobindo Pharma, is a project for the manufacture of 6APA product, which is the main and basic ingredient for the manufacture of the company's products. Given the foray into China to manufacture 6APA, a key raw material, and the expanded cost efficient production capacities, Aurobindo would be able to leverage itself better in the price elastic markets.