India-based glass pharmaceutical packaging company Kaisha has manufacturing facilities at Mumbai and Daman which the joint venture will utilise, with Schott sharing its technological knowledge.
Each company will have a 50 per cent share in the venture.
Kaisha claims to manufacture four million vials and ampoules a day.
This makes it a major player in the Indian primary pharmaceutical packaging market, with sales of $17.4m, and Schott will be hoping this strong starting position allows it to sew up the sector.
For many years Schott has sold Kaisha pharmaceutical glass tubing so the two companies already had a working relationship prior to the joint venture.
However, Schott has now decided it's the right time to establish a more substantial presence in India.
This move is motivated by desire to access the pharmaceutical packaging market in India, which is growing at approximately 10 to 15 per cent per annum, according to Schott.
This double-digit growth should continue as increasing numbers of Indian pharmaceutical companies look to supply their products in international quality packaging.
Professor Udo Ungeheuer, chairman of the board of management of Schott, said: " With this double-digit million euro investment, Schott continues on its course to growth and quality leadership.
Additionally, we are securing our access to a very promising market ."
Over the last few months Schott has been looking to establish itself in developing markets, with the company planning to be set up in Russia by 2009.
This is in addition to its pharmaceutical packaging production sites which are already established in Brazil, Indonesia and China, as well as seven other countries.
The China plant in particular was given a boost recently after it received the official license to manufacture and supply vials and ampoules to the Chinese pharmaceutical industry by China's State Food and Drug Administration.
China recently introduced a more stringent approval process for suppliers of pharmaceutical packaging with the intention of raising standards across the nation.
Bernhard Elsener, vice president global sales & marketing at Schott Pharmaceutical Packaging said: " This is good news for our customers in the pharmaceutical industry, because higher quality packaging translates into better protection and storage of medications ."
Schott now appears to be well placed to get a substantial share of several of the high growth pharmaceutical economies over the coming years.