LiTaka Pharma to set up Himachal unit

New plant to be operational by November

Pune-based LiTaka Pharmaceuticals has joined the bandwagon of pharma firms that are setting up units in Himachal Pradesh. With its first ever venture outside Maharashtra, the company is all set to get its new plant operational by November this year.

The plant is being set up by the Twilite group, which will be fully utilised by LiTaka Pharmaceuticals. Both the parties have entered a joint marketing arrangement. The new entity will be known as Twilite LiTaka Pharma.

The company, which currently has three plants in the state - two in Pune and one in Vasai is setting up its new plant in Solan district near Nalagarh, which will have two facilities - one for the pharma block, catering to the production of tablets, capsules and liquid, and the other solely dedicated towards the dietary food supplement segment.

LiTaka has made an investment of Rs 8.5 crore in the new set-up, which is spread over 1.25 acres of land.

"The construction started in May this year and will be completed by August. However, setting up of machinery and equipment will take another few months and the plant is expected to be operational by November," said Abhay Kapse, general manager, who is in charge of the technical aspects of the company's Pune plants.

As the new plant is in the excise free zone, the company plans to shift manufacturing of some products from its existing plants to the new unit.

"We will be able to reduce excise duty if products are manufactured there (Himachal)," said Sanjeev Dinkar Tole, company secretary, LiTaka Pharmaceuticals. Kapse said that this move will save at least 16.32 per cent spent on excise duty.

Kapse said, "The major reason for opting for Himachal is the incentives being offered by the state government there. Tax-free zone is the biggest benefit."

However, company officials admit that the decision for a new plant is a bit late. Kapse too believes so and added, "Many of the pharma companies have already set base in Himachal. We are a little late."

The estimated manufacturing capacity of the pharma block in Solan on a monthly basis is 2.5 crore tablets, 1 crore capsules and 10 lakh bottles.

The facility for dietary supplements, will be able to manufacture 2 crore tablets, 1 crore capsules as well as 26 metric tonne of powder.