Celebrity to set up 15 crore pharma unit

Chandigarh-based Celebrity Biopharma Ltd is setting up a new Pharmaceutical unit at Barotiwala in Solan (Himachal Pradesh) with an investment of Rs 15 crore.

In the first phase, the company will produce generic drugs, followed by cephalosporins and other injectable drugs. Further, it has engaged NIPER (National Institute of Pharmaceutical Education and Research), Mohali, as its technical advisor for the project.

Speaking to Business Standard, Celebrity CEO Tej K Magazine said, "The construction on the project is in the last stage and we hope to start production by January 2008. Spread over 1.25 acres, the upcoming unit would be a contract manufacturing unit with a project cost of Rs 15 crore in the first phase. In the first phase, the block for rolling out the generic drugs will be built while in second phase, the Cephalosporin block will be completed."

When asked whether the firm had tied up with some other company for contract manufacturing, he said, "We are in talks with some of the companies for the purpose. Things will be finanlised very soon."

Once the production capacity is completed, the general block will manufacture 10 lakh tablets (5-200mg) per shift of 8 hours. The company hopes that the production will start by January, 2008.

Magazine added, "We are hopeful our Cephlosporin block will be completed by the first week of April, 2008. The block will manufacture 10 lakh tablets (5-200mg), 3.2 lakh capsules (Range 0, 1, 2) and 40,000 units of dry powder (10-100 ml) per shift."

Commenting on future expansion plans, he added, "We plan to add injectables to the existing facility. For that, we have earmarked a budget of Rs 5 crore which will be completed by March 2009."

On being asked about the business the company is looking from the new unit, he said, "We are eyeing a turnover of Rs 15 crore in the very first year of operation, that is 2008-09."

When asked about the potential in the pharma sector, he said, "There is a huge potential as India's share in global drug business hovers around 8-9 per cent. There is a huge potential to further increase the share, too. There is a cut-throat competition in the sector and only those maintaining world-class standards can survive."

It is worth noting that since the announcement of the tax holiday to Himachal Pradesh, the Solan district alone has attracted about 400 pharma units.