Jubilant Organosys to invest Rs 250 cr

Jubilant Organosys, a CRAMS (custom research and manufacturing services) and bulk drugs company, plans to invest Rs 250 crore over the next two years.

With 26 active pharmaceutical ingredients (APIs) under different stages of development and plans to launch 17 drug master files (DMFs) over the next two years, Jubilant has projected an overall increase in net sales of about 40 per cent for the current fiscal.

The company has also projected a better operating margin, leading to a growth in excess of 60 per cent in net profit, compared to previous year. The consolidated net revenues and profit after tax in 2003-04 were at Rs 858.7 crore and Rs 78.2 crore, respectively.

The company recently acquired two companies in regulatory service and formulation business "" PSI NV and PSI Supply NV in Belgium ""at a cost of Rs 75 crore. The company had earlier this year raised $35 million FCCB, part of which was spent in acquisitions.

The balance, along with internal accruals, will be spent on the investments in API business in Nanjangud (near Mysore, Karnataka) and custom research and manufacturing in Gajraula (near New Delhi).

Jubilant has reported 46 per cent increase in the revenue during first five months of 2004-2005 to Rs 466.1 crore, compared to Rs 319.8 crore in the corresponding period last year.

The pharmaceuticals and life sciences chemicals business recorded a growth of 68 per cent and contributed 43 per cent of revenues.

Revenues from international markets at Rs 156.9 crore recorded a growth of 97 per cent. Sales to regulated markets of Europe, USA and Japan at Rs 114.3 crore increased by 175 per cent and accounted for 73 per cent of international sales.

The company has also declared a dividend of 100 per cent for the year 2003-04, which amounts to a higher payout of Rs 9.5 crore, compared with Rs 7.4 crore for 2002-03.

Jubilant, with a strong presence in CRAMS, is the composite pharmaceutical industry player offering products and services to global life sciences industry.

Company officials added that the main focus would continue to be on developing APIs for therapeutic segments of central nervous system, cardio-vascular systems, anti-diabetic and gastrointestinal drugs.