Bangalore-based Richcore Lifesciences Private Limited is planning to set up a fermentation unit near Vellore in Tamil Nadu at an investment of about Rs 10 crore.
“It will take a month or two for finalising the land for the new facility. The company will also set up manufacturing plants in Karnataka and Andhra Pradesh in the next phase,” said Subramani Ramachandrappa, chairman and managing director of Richcore Lifesciences.
For its proposed expansion, the company would raise a second round of fund from Hyderabad-based VentureEast. The VC firm had earlier invested Rs 10 crore in the company through a collaboration with the APIDC, an Andhra government body that provides financial and technical assistance.
Ramachandrappa did not quantify the funds that would be raised in the second round. The company, at the time of investment by VentureEast, was valued at $45mn (about Rs 225 crore) based on its new applications and patents.
Meanwhile, Richcore, which develops enzyme-based industrial products, is also planning to acquire a small biotech company, said Ramachandrappa.
The company is currently working on low-volume high-value products in sugar, textiles, animal nutrition, bio-fuels, food and beverages, paper, detergent and leather segments.
With a liaison office in the US already in place, it will register some of its products for export to the US and Europe.
“This is a good time for the company as the demand for agri products is on the rise. Richcore will tap opportunities in edible oil extraction and purification and specific manufacturing processes for the pharma industry,” he said.
For the current financial year, Richcore has set a turnover target of Rs 35 crore as against Rs 15 crore last year. It is also doubling the strength of its research wing, which now has 35 faculty.
The company is also in the process of launching entrepreneursindia.com, which will be up in four to six months. The portal will offer consultancy services on entrepreneurship to small traders and employees.
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