Alembic to up tablet/capsule capacity from 1b to 1.8b

Vadodara-based Alembic Limited plans to increase its tabletsapsule production capacity from the present 1 billion per annum (PA) to 1.8 billion (PA) tabletsapsule at its formulation manufacturing facility in present year. In next three years the company plans to raise its production capacity to 5 billion PA tabletsapsule.

The company is also looking at CRAMS business as the next big opportunity. According to Chirayu Amin, chairman and managing director of Alembic, the CRAMS will be an important growth driver for the company.

It has already an existing research wing, BioArc Research Center with 150 scientists working at the centre. It has in-house research capabilities including a 36-bed bio-study center.

Alembic Ltd may even raise fund from overseas market to raise its capital expenditure limit which would help it in financing its planned expansion programmes.

R K Baheti, director and president - finance, told Business Standard, "We are exploring various option to raise the fund and one way is through extra commercial borrowing (ECB) to fund the expansion." He further elaborated that the company might go for raising $8 to 10 million through ECB route.

Although Baheti did not specify the usage of the funds he clarified that the funds raised would not be used for debt repayment purpose. Alembic recently acquired Dabur's non-oncology business through debt route.

A GMP Pilot plant facility at the company's manufacturing location at Panelav helps R&D to scale up the technologies, file DMFs and give pre-clinical GMP supplies of materials to MNCs through CRAMS model.

Alembic is also eyeing to increasing its international business as the company plans to tap the markets of Europe, Canada, South America and US. Targeting the overseas markets, the company is looking at filing 10 DMF's and 12-15 ANDA's per year. The company aims to increase its market footprint to other foreign markets like Brazil, Russia, Australia and South Africa.

The company's domestic formulations contributed 68 per cent of the revenues, while exports were at 18 per cent. However, the company plans to create its international presence in next five years and with 60 per cent business from exports.