Cadila to launch five BT products

With the biotechnology products gaining ground, Cadila Pharmaceutical Ltd, is planning to launch another five biotech products in next few months and would add parenteral products at its newly-commenced Ethiopian plant.

I A Modi, chairman, Cadila Pharmaceuticals Ltd, told Business Standard, "We already have seven biotech products in the market and another five biotech products are under the pipeline and would be launched soon in the market.

" The biotech products are related to tuberculosis (TB), cancer and malaria. The company is presently carrying on the research and development of the biotech products.

The company has recently commenced its first overseas production plant at Ethiopia. Modi expects its Ethiopian plant will reach the break-even by the completion of the first year of its operation.

"Rather, we expect that our Ethiopian plant might make profit in the first year of its operation," adds Modi.

The company believes that in the first year of its operation it might reach a turnover of $15 million.

The company is also planning to expand its production capacity in 2009. According to Modi, the company plans to increase its production capacity of its Ethiopian plant.

The present production capacity is 390 million tablets, 165 million capsules and 1.44 million litre bottles in one shift. "We have informed the Ethiopian government that our intention to set up parenteral production units.

The company will start its commercial production from October 15 and within the next two to three months, the company will start two shifts. Initially, the company will start with one shift.

The 30 per cent of the Ethiopian plant will be meant for export within the African nations, while the remaining will be for domestic sales in Ethiopia.

Exports to other African nations will be met from the Ethiopian plant to benefit from the custom duty cuts.

The total project cost of the Ethiopian unit stood at $10 million. The main focus of the plant would be to produce therapeutic drugs in for cardiovascular, anti-diabetes, gastroenterology, anti-infective, anti-depressants, anti-fungal, anti-TB, anti-malarial, anti-retroviral, anti-emebic, haematinics, anti-allergics, painkillers, multi-vitamins and others.

The total pharma market of Ethiopia is approximately $200 million and is growing at the rate of 10 per cent per annum.

While speaking on Cadila's pharmaceutical SEZ, Modi said it expects to complete its infrastructure by the end of 2010. "To create infrastructure we will be investing Rs 120 crore," added Modi.

He further said it will assign a German consultant company to study the SEZ plans and design as they are experts in the field of infrastructure. "We are not in hurry to allot the land to pharma companies," says Modi.

The company would prefer to allot land at its SEZ site for those companies who are interested in setting up large size manufacturing units.

The company is open to offers from companies that requires at least 50 acres for its manufacturing units.

"We are comfortable if we get six to eight large-sized companies at our SEZ," added Modi.

Presently, the company export stand at Rs 175 - 200 crore of the turnover of Rs 650 crore.