Ranbaxy Laboratories plans to set up a joint venture (JV) in China to manufacture active pharmaceutical ingredients (APIs) used in drug manufacturing, according to India's Business Standard.

"We are currently talking to two-three large API manufacturers from China and also evaluating various other options. It is too early to divulge more details and name of the companies," said Naresh Kumar, senior vice-president, API research and manufacturing business, Ranbaxy Laboratories, on the sidelines of CPhI Worldwide, the annual pharmaceutical exhibition at Milan.

He said currently majority of the APIs produced by Ranbaxy was used for internal consumption and the joint venture in China would be part of the move to expand its API capacity.

Ranbaxy already has three API manufacturing facilities in India and a good share of raw materials is sourced from China. Ranbaxy was among the earliest Indian pharmaceutical companies to enter the Chinese market through a joint venture Ranbaxy Guangzhou China in 1993.

Most of the leading Indian drug makers have either JV or own subsidaries in China, though very few companies have succeeded in their China foray. Some of the recent joint ventures include the NCPC-Orchid joint venture to make cephalosporins, Granules India with Hubei Biocause Heilen Pharmaceutical Company and Aarti drugs with Huanggang Yinghe Pharmaceutical.