Parabolic Drugs to set up units Punjab, Himachal Pradesh

Chandigarh-based Parabolic Drugs Ltd (PDL), manufacturer of active pharmaceutical ingredients (API) and API intermediates, is planning to set up two units in Punjab and Himachal Pradesh at Rs 100 crore. The project will be funded through debt and equity options.

Speaking to Business Standard, Managing Director Pranav Gupta said: "We have plans to put up two units, one in Punjab and the other in Himachal Pradesh with a total project of Rs. 100 crore. In the Punjab facility, the company will infuse Rs 55-60 crore while the rest of the money will be invested in the Himachal facility."

On funding options, he said, "We are looking at both debt and equity options to fund the projects."

Parabolic has successfully completed two private equity transactions in 2006, diluting 7 per cent approximately. Earlier, in September 06, Mauritius-based FII Minivet Ltd had taken a 4.9 per cent stake in the company for $1 million. This money will facilitate the expansion of its operations in semi-synthetic steriles and cephalosporin (oral & steriles) for regulated markets.

PDL has two manufacturing facilities "" in Derabassi, Punjab and in Panchkula, Haryana. Further, the company is investing Rs 60 crore to expand the production capacity of Derabassi unit.

Stressing on R & D, he says, "Though PDL is a young company, its key strength has been its focus on R&D through which we have developed a robust productline. We are coming up with a R & D centre in Barwala, Haryana with a project cost of Rs 15 crore. Further, we have earmarked 4-5 per cent of our total turnover for R & D activities each year".

"In the last financial year, the turnover of the company was Rs 170 crore and we aim a consistent growth at around 50-60 per cent for the next five years, " he added.