New Delhi, April 25 : The board of directors of Nestle India has approved the execution of a definitive agreement to form a joint venture with Dr. Reddy's Laboratories for nutritional health solutions, as the fast-moving consumer goods (FMCG) company on Thursday reported a net profit of Rs 934.17 crore for the fourth quarter (Q4) of FY24.

Dr Reddy's will hold 51 per cent while Nestle India will hold 49 per cent stake in the JV with proportionate shareholder rights to voting, dividend distribution, and other economic rights, Nestle India said in a statement.

Nestle India will have a call option to increase its shareholding up to 60 per cent after six years at Fair Market Value. Dr Reddy's will continue to hold at least 40 per cent of the shareholding after the company exercises its call option, Nestle India said.

The joint venture is expected to become operational in the second quarter of the 2024-25 fiscal, subject to customary closing conditions.

Meanwhile, the total income for Nestle India went up 8.84 per cent to Rs 5,294.34 crore in Q4, in comparison to Rs 4,864.22 crore reported during the same period last fiscal.

"We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix," said Suresh Narayanan, Chairman and Managing Director, Nestle India.

/IANS