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Shasun Pharma's arm gets UK govt grant

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Gireesh Babu Chennai
Last Updated : Jan 21 2013 | 1:22 AM IST

Shasun Pharma Solutions Limited (SPSL), the UK-based subsidiary of Chennai’s Shasun Pharmaceuticals Limited, has received around GBP (Great Britain Pound) 400,000 (close to Rs 3.2 crore ) grant from the UK government’s investment package, which is meant to generate more job opportunities in the region.

The grant accounts for around 20 per cent of the company's investment of GBP 2 million (Rs 16 crore) made recently in its plant in Dudley, UK. The company has built up capacity for niche product manufacturing segments with the investment, and is expecting around GBP 5 million annually from the new technologies installed, said S Abhaya Kumar, managing director, Shasun Pharmaceuticals.

“We expect the new capacities to increase our support to the custom-synthesis and contract manufacturing customers. This will also reflect on the top line and bottom line of our business,” Kumar said. The company has developed niche capabilities in critical reactions like ethylene reactions, which would help it serve its customers in these technologies.

The company was selected for the grant, along with few other companies including Piramal Healthcare UK which has a facility at Morpeth, since the investment had generated more job opportunities. Expansion of SPSL has created opportunity for around 20 people afresh in the Dudley facility.

“The new technology and capability we have built up will provide us around GBP 5 million (Rs 40 crore) business annually in future,” he said.

With the expanded capacity, the company expects its top line to be around GBP 44 million (Rs 352 crore), while the bottom line is expected to grow 13 per cent. SPSL has posted a top line of GBP 37 million (Rs 296 crore) last year. Shasun Pharmaceuticals acquired UK-based pharma company Rhodia Pharma Solutions in 2006 and renamed it as Shasun Pharma Solutions.

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According to information available with the company till the end of November 2011, the UK subsidiary has a pre-launch pipeline of 19 projects in the second and third phase of clinical study. Currently, it has a contract manufacturing portfolio of around 28 launched products.

Shasun Pharmceuticals’ manufacturing unit at Visakhapatnam in Andhra Pradesh is expected to be commissioned by July-August 2012, Kumar said.

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First Published: Dec 07 2011 | 12:59 AM IST

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