Lupin plans to invest Rs 500 cr for new units
India's third-largest pharmaceutical company by revenue Lupin is planning to set up two manufacturing plants in the country to meet increasing demand for drugs from advanced and emerging markets. Sachin Kumar reports.business Updated: Sep 12, 2012 00:01 IST
India's third-largest pharmaceutical company by revenue Lupin is planning to set up two manufacturing plants in the country to meet increasing demand for drugs from advanced and emerging markets.
The Mumbai-based drug-maker, which witnessed gross sales of around Rs 7,000 crore in 2011-12, is expected to invest close to Rs 500 crore on the new plants for manufacturing formulations and active pharmaceutical ingredients (APIs). Formulations (tablets, capsules, injections) are drugs used by end users while APIs are raw materials used for making those drugs.
"There will be two new plants coming up," said Nilesh Gupta, group president and executive director, Lupin. "The first plant will be in Nagpur which will be for formulations and for API plant we are still looking at options."
The company currently has 10 manufacturing plants, of which two are in Japan and eight in India.
For API plant, the company wants a location which meets all environment requirements.
"From API perspective we will look for the states where they are managing environment properly," said Gupta.
Since formulation plants have zero discharge, firms can set up plant anywhere without thinking about environment issues.
It will take around three years for these plants to be functional as the management expects to commercialise the units by 2014.
The company expects the capital expenditure to be around Rs 500 crore in the current fiscal year.