SNF to set up plant at Vizag Pharmacity

Company to become the first and biggest allottee of land at Pharmacity

SNF India Limited, a subsidiary of the French multinational SNF Floerger, which is into water treatment products among other chemicals, is poised to set up its manufacturing facility at Vizag Pharmacity at an investment of over Rs 100 crore.

Incidentally, the company will become the first and also the biggest allottee of land at the Pharmacity proposed to be developed in an area of 2,120 acres. The company is acquiring 42 acres for its manufacturing operations that would be aimed at catering to the southeast Asia region including China, according to company sources.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and Ramkee group, the developers of the joint venture Pharmacity project, have decided to offer the land to SNF at a concessional rate of Rs 15 lakh per acre as compared to the predetermined price of Rs 20 lakh per acre as a goodwill gesture, APIIC officials told Business Standard.

Earlier, the developers earmarked over 450 acres of land at the Pharmacity to the members of Bulk Drug Manufacturers Association (BDMA) on a similar rate.

"SNF India has remained committed to setting up its plant in Vizag despite attempts by the Gujarat government that approached the company to set up the manufacturing facility in that state," a senior APIIC official said.

The company had approached the Andhra government for allotment of land in Visakhapatnam for its operations much before the Pharmacity project came into existence.

A leading producer of synthetic flocculants with more than 25 per cent share of the world market, SNF is planning to produce speciality chemicals which are used in steel, leather, pharma and other sectors.

At present, SNF has manufacturing facilities in three countries and operates through its sales offices in over eight countries. The company will apply for clearances for its proposed plant from June 1, and is expected to begin civil construction in December 2005, according to officials.

Marking the beginning of investment flow to the proposed Pharmacity, chief minister Y S Rajasekhara Reddy himself is expected to hand over the land allotment papers to SNF's India project head Prasad Mulukutla in a couple of days.

According to APIIC officials, SNF management representatives were impressed by the speedy clearances given to the Pharmacity project by the Government of India besides industrial environment in Vizag which is poised to attract huge investments in the coming days.

In December 2001, the French MNC acquired about 60 per cent share in the joint venture SNF-Ion Exchange and became the 100 per cent owner of the new entity "� SNF India.