The Japanese company was negotiating with Cadila since September last but the agreement was formalised only during Nichiiko senior executive director Yuichi Tamura's present visit to the country.

Addressing a joint press conference with CPL chairman IA Modi on Friday, Tamura said the agreement would pave the way for sourcing Nichiiko's bulk active requirements from India for captive consumption as well as for supplying to other pharmaceuticals companies in Japan and using the CPL's global presence and marketing expertise for registration and products' promotion in Africa and Russia.

He said that in future there might be an exchange of personnel between the two companies for furthering the long-lastingagreement. He hoped the tie up would facilitate the manufacture Nichiiko products in the country.

Nichiiko has identified eight CPL products under the categories of anti-ulcerants, anti-allergenics, anti-fungals, eye preparations and macrolides for marketing in Japan between 2001-04 as and when the patent of these products expire.

The Japanese firm, having a capital base of 1,400 million yen and annual turnover of $100 million, produces and markets 200 generic drugs, 30 over the counter (OTC) drugs and nutritional supplements and a wide range of food drinks. It has a strong presence in the markets of China, Korea and Taiwan, besides Japan.

Modi said CPL already had alliances with many pharmaceutical companies in the US, France, Germany, Australia, Russia and Africa and was in the process of concluding several more this year. He said the tie up with Nichiiko included technological exchanges and collaboration in research and development.

The Rs 400 crore CPL has six manufacturing facilities in thecountry, including a state-of-the-art plant on a 80-acree plot at Dholka, about 60 km from Ahmedabad, besides a R&D centre, conforming with stringent Japanese good manufacturing practices (GMP) USFDA and MCA specifications, producing about 400 formulations, bulk actives, biological and herbal medicines and new drug delivery systems. CPL's current strength is in the Russia and select markets in Africa, besides a large network of sales offices and personnel in every corner of the country.