DRL will hold a 51 per cent stake in the joint venture (JV), with an investment of $5,610,000 over three years while Canada Rotam Enterprises and Kunshan Double-Crane Pharma Company will hold stakes of 47.41 per cent and 1.59 per cent respectively. The venture will entail a total investment of $15,780,000, with a registered capital of $11,000,000. The JV will produce and bulk formulations, tablets, capsules, ointments, gels etc and sell "self-made" products. The JV will be headed by Canada Rotam Enterprises chairman Mark Lu. Rotam and its associates earned revenues of $350 million in 1999.

DRL managing director Satish Reddy said, "Our entry into China through the JV is a landmark event for the group in its goal to emerge as a leading global player in the formulations segment". The JV has a formulations facility with a built up area of 8000 sqm and the unit will produce 180 million tablets, 120 million capsules and 3.6 million tubes of ointment annually, once operations commence. The JV has finalised plans to manufacture bulk activities for in-house consumption. The JV deal cements a four-year long association with Kunshan Rotam Pharmaceutical Company, (KRM). The $2.50 million KRP has a sales team of 90 personnel operating from five regional offices. DRL has provided assistance in product development, quality control and registrations to KRP.