DSM starts Punjab unit

The Lotus Plant of Dutch State Mines, manufacturing Purimox, an antibiotic with highest purity, was commissioned today at Toansa, district Nawanshahr, today.

This is the second plant of DSM Anti-Infectives (the first one was put up in Spain in 2003) that would cater for the emerging markets of the Asia-Pacific, the Middle-East, and Africa. The total project cost is above Rs 100 crore, and has an annual capacity of producing 5,000 tonnes of Purimox.

According to the president, DSM Anti-Infectives, Gerard De Reuver, the reason for putting up the Lotus Plant in India was the competency of the core team handling the Indian operations.

He said India had rich and dedicated human resources for the development of the pharmaceutical sector. The plant has been completed in 18 months.

Reuver said the investment in R&D was a thrust area at DSM Anti-Infectives and the company was contemplating investing $500 million in one of the emerging markets.

The company clocked a turnover of $100 million last year in India and had the potential to grow in proportion with the country's gross domestic product, he added.

The company has a 50 per cent market share in India and expects to add another 10 per cent with the production at the Indian facility.

The introduction of Purimox would largely replace the use of Amoxicillin. The vice-president, DSM Anti-Infectives, N V Ramanan said the production of Amoxicillin was limited natural resources-friendly. Purimox is a water-based product, has fewer solvents and a better taste. It has a shelf life of five years as compared to 2-3 years of traditional products.

Pharmaceutical manufacturers from the Asia-Pacific attended the presentations made by the DSM team.

Talking to Business Standard on the sidelines of the event, an entrepreneur from Singapore said that they were buying this product from the company's plant at Spain and the commissioning of the plant in India would reduce the logistics cost for them and hence they would double the purchase from 150 tonnes to 300 tonnes.

The Pakistani participants expressed interest in having a tie-up with the company for the transfer of technology to manufacture Purimox in their own country.