Actavis plans Rs 35 cr spread

Fresh from a fund infusion from Reykjavik-based generic pharmaceuticals company, Actavis Group, Chennai-based Grandix Pharmaceuticals Ltd, is planning to expand its Indian operations and beef up its international presence through exports by fiscal 2008.

The company, which currently has its presence in eight states, will set up marketing units in a few other states, starting with the north-western region, and later central India and the north-east.

The company is planning to export its products to Nigeria, Sri Lanka, Singapore, Phillipines and European countries. Grandix, which exports its products to the US through a distribution network, will set up its own marketing units in these countries.

In order to fund its Indian expansion, Grandix will invest around Rs 20 crore, while another Rs 15 crore will be invested in expanding its international operations.

The investment will be financed by the recent selloff of its Chennai manufacturing plant to Actavis. However, the deal size was not disclosed.

"We plan to fund our investment operations via internal accruals and from our recent deal with Actavis. The Actavis deal will abet our expansion plans," said A Ramamurthy, managing director, Grandix Pharmaceuticals Ltd.

He also revealed that around 30 new products were in the pipeline for the next two years. The new products will include painkillers, antibiotics and neuropsychiatric drugs. Grandis will increase its marketing staff strength from 350 to around 650 in India.

Grandix is currently in the process of shifting its manufacturing processes to Uttaranchal, Himachal Pradesh and Jammu as the manufacturing costs out of these locations is expected to come down by around 16 per cent, in comparison with other states.