Unichem plans two units in Indore, Sikkim

Mid-sized drug-maker Unichem Laboratories is exploring the possibilities of setting up two manufacturing units, one in Madhya Pradesh and another in Sikkim. The Rs 500-crore pharmaceutical company is at present scouting for land.

The Mumbai-based company plans to set up a formulations unit at Indore SEZ and intends to export products to the US. In Sikkim, depending on the availability of land, Unichem will set up a bulk drug or generic drug facility to be sold in the domestic market.

Confirming this, Unichem Chairman and Managing Director Prakash Modi said that the company would invest around Rs 40-45 crore at Indore SEZ and another Rs 3-5 crore in Sikkim. However, this would depend on the availability of land and exemptions offered by respective governments.

The company has a presence in formulations, bulk and generic drugs and active pharmaceutical ingredients (API). Its total investment in formulations and APIs in the country is around Rs 250 crore.

It is also looking at acquiring a pharmaceutical firm in Brazil and is in advanced stage of negotiations with a company with a couple of product approvals and a firm marketing network. The acquisition cost would be around $22-25 million, said Modi.

Brazil is one of the largest markets for pharmaceuticals and having a marketing presence in the country will help the company in a big way. The company already has a presence in the country through its subsidiary Unichem Farmaceutica do Brasil. The company has around seven product approvals in Brazil.

Unichem is keen on acquiring a domestic firm, most probably one in the formulations segment. "We would look at an acquisition with a strategic fit with our ongoing operations," he said.