Granules India to shut down Singapore subsidiary

Granules India Ltd, a manufacturer of finished dosages, pharmaceutical formulation intermediates and active pharmaceutical ingredients (APIs), has announced plans to close its subsidiary in Singapore. In a filing to BSE, Granules India informed that the Board of Directors of the Company at its meeting held on October 30, 2013, inter alia, has decided to close Granules Singapore Pte Ltd, wholly owned subsidiary of the company, located at Singapore.
 
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Meanwhile, Granules India has reported 52% increase in its consolidated net revenue to Rs 266 crores in second quarter ended September 30, 2013, compared with Rs 175.5 in crore in Q2FY13. Its net profit was up by 87% Rs 15.1 crore in Q2FY14 compared Rs 8.1 crore in Q2FY13. Granules India stated that the growth was driven by strong performance across all three verticals. The formulation facility at Gagillapur continued to scale-up production which improved capacity utilisation. The company expects a majority of customer approvals to be in place in the second half of the fiscal year.
 
"We are focusing on higher capacity utilisation to achieve higher revenues and better margins which resulted in 36% growth in the top-line and 108% growth in the bottom-line. In addition to strong revenue growth, our profitability margins are increasing and we have nearly achieved our FY13 PAT in the first half of this year. We expect our margins to further improve as our sales shift more to formulations and capacity utilisation increases. Granules will continue to focus on improving manufacturing efficiency so we can build on our competitive advantage in order to offer unparalleled value for our customers," said Krishna Prasad, Managing Director, Granules India.