Hyderabad, March 5 (PTI): Pharmceuticals company Granules India Ltd today said it has entered into an outsourcing agreement with Australia's Matchland Pty Ltd to manufacture drugs for the latter for its home market.

This would be Matchland's first outsourcing agreement with any Indian company, Granules said in a release.

The agreement is in the nature of partnership wherein Matchland will compensate Granules for all the cost incurred in manufacturing and will also provide a transparent profit margin, it added.

The deal is in line with Granules' strategy of expansion into lesser explored markets like Australia and New Zealand, and the company is planning to use its TGA approved pilot manufacturing capabilities to kickstart the manufacturing as soon as possible, company's Managing Director C Krishna Prasad said.