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Surya Pharma to start Rs 80 cr unit in J&K

Chandigarh-based firm's 6th unit in Sambha to focus on manufacturing steriles

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Komal Amit Gera Chandigarh
Last Updated : Jun 14 2013 | 4:21 PM IST
Chandigarh-based Surya Pharmaceutical Ltd is spreading its wings in Jammu and Kashmir by putting up a 40,000 square feet unit in Sambha Phase II (30 km from Jammu).
 
The company will invest Rs 80 crore in the upcoming plant, which will mainly focus on manufacturing steriles. The company has its existing units in Panchkula (Haryana), Baddi (Himachal Pradesh) and Banur (Punjab). It is setting up its sixth unit in Jammu and Kashmir to reap the benefits of package of industrial incentives offered in the state. The company has incorporated a new entity""Surya Healthcare Limited""for the new manufacturing facility.
 
Talking to Business Standard, the managing director of the company, Rajiv Goyal, said, "There is stiff competition in the bulk drugs sector across the world and China is a major threat to Indian drug manufacturers. But we can have an edge over China in manufacturing steriles. Also, the profit margins in steriles are higher than in bulk drugs. So we want to tap this opportunity."
 
He said the company had proposed to convert its Banur plant (that turns in 60 per cent of the turnover) into a USFDA (United States Food and Drug Authority)-compliant one, which would allow them to sell its products in the US and Europe as well.
 
The company presently exports to 60 countries. Surya Pharmaceuticals clocked in an export turnover of Rs 100 crore last year.
 
Goyal said there was a tremendous potential in the global and domestic markets and the company expected to touch a turnover of Rs 600 crore in the next two years that would be three times of the existing turnover.
 
"Leading drug manufacturers of India like Ranbaxy, Cipla and Dr Reddy's are our clients. Although there is no dearth of orders from foreign multinationals, we want to retain our presence in the domestic market as it provides a cushion against the vicissitudes in the global market," said Goyal.
 
The company has its research and development centre at Panchkula and spends 4 per cent of its turnover on R&D.
 
Goyal indicated that power shortage is one of the biggest concern for the local industry in the region. "We plan to put up a 1 Mw captive power plant at Banur that will be operational by March 2006. The in-house power plant will help us reduce our power consumption to half as it will provide us steam-based refrigeration," added Goyal.
 
Growth story
 
  • New unit in Sambha Phase II will be spread over 40,000 square feet
  • The company already has units in Panchkula, Baddi and Banur
  • It plans to make its Banur plant USFDA-compliant, that will allow it to export products to US and Europe
  • It expects to touch a turnover of Rs 600 crore in the next two years
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