| A slew of tax benefits in the form of excise and sales tax holidays seems to be the incentive for the move. |
| Paras Pharmaceuticals, which clocked a turnover of over Rs 200 crore in the 2004 calendar year, has a manufacturing facility at Kalol in Mehsana district in the state, about 35 km from Ahmedabad. |
| "The company will set up a new facility at Mehsana, but will continue to operate the Kalol facility. The new facility in Baddi, for which civil works have already begun, will be set up at a cost of around Rs 38-40 crore. It should become operational in less than a year from now," said Girish Patel, chairman, Paras Pharmaceuticals Ltd. |
| The company has accorded the contract to Era Constructions (India) Ltd for construction of a pharmaceutical complex for its new formulation facility at Baddi. The contract for the building, excluding the cost of cement and steel, has been accorded for a sum of Rs 10.90 crore. |
| Its product Moov, a pain reliever, accounts for about 23 per cent of the company's sales. Patel said that in 2003, Moov accounted for a share of 25 per cent of the company's turnover, which dipped slightly to 23 per cent in 2004. |
| "The other brands too are now contributing almost equally to the sales," he stated. |
| The other noted brands of the company include Crack cream, Itchguard and D-Cold. The company had reported sales of Rs 190 crore in 2003 and crossed a turnover of Rs 200 crore in 2004. |
| Patel stated that Paras will continue with the strategy of outsourcing manufacturing of certain formulations and cosmetics to other companies, even while continuing with manufacturing of those products in which it has an expertise. |
| "We will gradually upgrade the capacity of both the Kalol and Baddi units, but it will be too early now," Patel said. |
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