Marck Bio to scale up capacity by 2007

Marck Biosciences Ltd, manufacturer of large volume parenterals (LVP) and small volume parenterals (SVP), plans to scale up the production capacity of SVP and LVP by the end of July 2007.

Talking to Business Standard, Bhavesh Patel, managing director of Marck Biosciences, said, "We are scaling up our present production capacity of SVP by 32 million units and of LVP by 165 million units."

According to the company, the production capacity is being scaled up as it plans to stretch its operations within India and among the countries of the Pacific rim, including some of the Southeast countries.

Currently, the company has an installed capacity of 29 million units for SVP and 65 million units for LVP. Post-production, the capacity of SVP will be 61 million units and that of LVP 230 million units.

"We are investing Rs 133 crore for the expansion," said Patel. The company is investing in two phases starting with Rs 72 crore. Later, it will add another Rs 61 crore. The company will complete its first phase expansion by the end of March 2007, while its second phase expansion will be completed by July 2007. Its plant is located at Kheda in Gujarat.

After expansion, the company's share in IV fluid market would be 15 per cent. The IV fluid product forms the major product of the company's SVP and LVP accounting for nearly 60 percent of its total revenue. Of the total IV fluid market, which is worth 60 crore units per year (approx Rs 1,080 crore), its share at present is minuscule.

Marck has its presence in western and northern India. Post expansion, it plans to spread to the southern and eastern parts as well. The company will soon start developing its network of field staff and distributors in these parts of the country. "From April, we will have our presence across the country," said Patel.

The company is set to launch its Opthalmic and respiratory range of products along with IV fluid product in Pacific rim countries. It has also filed its dossiers in countries like Mayanmar, Philippines, Thailand, Combodia, Malaysia and Sri Lanka. The company is also in the process of filing its dossiers in Singapore, Indonesia and Vietnam.

Marck Biosciences has a presence in over 40 countries with an annual turnover of approximately Rs 40 crore of which exports contribute 35 per cent. The company expects to exceed Rs 110 crore turnover post expansion.