Lupin in talks to buy 300 acres from Indiabulls
In what could be the biggest real estate deal based on land size in the year, pharmaceuticals major Lupin Ltd is learnt to be in talks to acquire 300 acres of land near Nashik in a special economic zone (SEZ).business Updated: Jan 30, 2011 22:48 IST
In what could be the biggest real estate deal based on land size in the year, pharmaceuticals major Lupin Ltd is learnt to be in talks to acquire 300 acres of land near Nashik in a special economic zone (SEZ).
According to people close to the development, the company is in final stages of discussions with Indiabulls to acquire the land in the latter’s Sinnar SEZ near Nashik. Lupin is planning to set up an export-based manufacturing facility in the area.
Though it is difficult to pin down the exact value of the land, going by the land being sold in the vicinity of the SEZ, the price of the patch that Lupin wants could be around Rs 300 crore.
An independent real estate consultant told Hindustan Times that it would be worth at least Rs 300 crore but a source said in a guarded note, “In any SEZ there is no outright purchase of land. The price depends on certain infrastructure offered and requirements of the company.”
Indiabulls would have to provide certain infrastructure to Lupin and it is only after that the latter will pay the negotiated price. If the deal goes through, Lupin will make payments in more than two tranches.
An email sent to Lupin remained unanswered and repeated requests to respond to a questionnaire from HT did not elicit any response.
However, Indiabulls confirmed the development. “Many companies including Lupin have made preliminary inquiries for setting up their export-based facilities in the Sinnar SEZ. Discussions with a few of these companies are in progress but at this stage nothing has been firmed up and therefore there is nothing else to share by way of information,” said an Indiabulls spokesperson in an emailed response.
Lupin, which saw consolidated net sales of Rs 4,740 crore in 2009-10 has nine manufacturing facilities in India and one in Japan. Currently, Lupin is generating major revenue from advance markets. In 2009-10, 58% of the company’s revenue came from advanced markets, 34% from India and 8% from emerging markets.
Lupin, which exports drug to many countries, recently became the first Asian company to make it to the to top five companies in US generic market in terms of number of prescriptions.