Bilcare plans to buy facility in Europe

After closing its recent US acquisition, Bilcare Ltd, India's largest pharma packaging solutions company,- is planning another facility buyout in Europe as part of its immediate overseas business growth strategy.

The company, which is planning to issue GDR of about $50 million for the European acquisition, would set up its wholly-owned subsidiaries in the US and Europe in the next two years. It had set up its first foreign subsidiary, Bilcare Pte, in Singapore last year.

Mohan Bhandari, chairman and managing director, Bilcare, told  Business Standard that the company is very keen to enter these key pharma markets, as the new drug regulatory scenario and the innovative sales requirements in the developed markets provide a wider scope of growth for the integrated packaging solutions companies like Bilcare.

Bilcare company had acquired the US-based Proclinical Inc last month at an investment of $12 million. The US subsidiary will be in operation by the end of this year, Bhandari said.

"In Europe, we are in the lookout for an ideal fit. Now, it is too early to confirm any specific companies as the due diligence is still on," he said.

Bhandari said, as the company's decision to enter Europe is final, it may even set up a greenfield project if it fails to spot a company suitable to its needs. "The European buyout will be either in the UK or in Germany. We are in talks with a few players in both these countries at present, and the deal should happen this year," he added.

Currently, Bilcare has a presence in these world markets with its existing customers such as Johnson & Johnson, Merck, AstraZeneca and Genome Inc, and also through its Indian customers like Dr Reddy's Lab, Ranbaxy and Nicholas Piramal, for highly innovative and scientific pharma packaging solutions.

At present, the total pharma packaging market in Europe and the US is estimated at $40 billion.

With the US acquisition, Bilcare will now concentrate more on completely integrated packaging solutions, beginning from the discovery stage to the marketing stage packaging solutions support for the global pharmaceutical manufacturers.

This includes research expertise in formulation and analytical development sciences, packaging material and systems expertise for packaging design and development, and a range of customised packing solutions.