Lupin lines up Rs 450-cr splurge
Drug maker Lupin will invest around $100 million (around Rs 450 crore) as capital expenditure in the current fiscal 2011-12 to expand its manufacturing capacity to meet an increasing demand of the pharmaceuticals products. Sachin Kumar reports.business Updated: Jun 10, 2011 20:56 IST
Drug maker Lupin will invest around $100 million (around Rs 450 crore) as capital expenditure in the current fiscal 2011-12 to expand its manufacturing capacity to meet an increasing demand of the pharmaceuticals products.
"We are growing at the rate 25-30% per annum, and this kind of growth calls for capacity expansion," said Ramesh Swaminathan, president (finance and planning), Lupin. The company has nine plants in India formanufacturing formulations and active pharmaceutical ingredients.
Capital expenditure of the company stood at Rs 481 crore during the last financial year 2010-11. For the financial year ended March 2011, Lupin's consolidated sales and net profit were Rs 5,7,07 crore and Rs 863 crore respectively.
For the current fiscal, the management did not give any figure but expects to maintain the past performance. In the last six years the company's sales has been growing at compound annual growth rate (CAGR) of 27%.
"We will have a fairly good growth in current fiscal and expect to maintain the momentum we have seen the past few years," said Swaminathan.
However, the management accepts that there would be a few challenges such as hike in the input cost which might put some pressures on the profit margins.
On the issue of acquisition, the company said it is always looking for 'good opportunity'.
Apart from India, Lupin has significant presence in United States, Europe, Japan, South Africa and Philippines. Sales from the US and Europe contribute 38%, India 27% and Japan 11% to its consolidated sales. The company has presence in cardiovascular, diabetes, asthma, pediatrics, central nervous system, gastro-intestinal, anti-infectives and anti- tuberculosis segment.