India-based pharmaceutical company Dr Reddy’s Laboratories is setting up a corporate venturing subsidiary that is considering 20 startups for investment, LiveMint reported on Friday.
The name of the new unit and the amount of capital set to be allocated to it have not yet been disclosed. The startups that may receive capital have also not been named so far, but they reportedly include a chain of dental clinics and health diagnostics laboratories.
Dr Reddy’s plans to invest primarily in companies that will enable it to expand its market focus to cover the wider health sector, as well as businesses focused on medical diagnostics and services aimed at supporting patients.
The company will also encourage employees to pitch ideas for potential businesses and incubate startups in-house.
GV Prasad, co-chairman and chief executive of Dr Reddy’s Laboratories, said: “We will not go wild and invest everywhere, we will be strategic investors. This is not to make money out of our investment, this is to build businesses or to learn things.”