Dishman to invest Rs700cr in pharma, engg SEZs

Dishman Pharma plans to have a dedicated pharmaceutical SEZ at an investment of Rs 400 crore.

The company expects three European and two US pharma companies to set up manufacturing units in its proposed pharma SEZ, wherein it will also have its own API unit. Dishman also proposes to have an engineering SEZ - at an investment of Rs 300 crore - adjacent to its pharma SEZ.

J R Vyas, MD of Dishman Pharma told Business Standard the pharma SEZ holds the key to the future plans of the company. "We plan to commission our API unit in SEZ by mid 2009 so that before EOU benefits go company will have a similar benefits available in some other form." Dishman is banking heavily on contract manufacturing jobs expected from the units which would to set up their shops in the propoed SEZ.

With increased cost of production most pharma companies from Europe and the US are looking for opportunities to shift some of their product lines having thin margins to countries like India and China, where contract manufacturing would help them to maintain their lead in their respective segments. It a great opportunity for the API and fine chemicals business as most generic products manufacturers would prefer to have someone within SEZ providing them intermediate products, Vyas said.

The company has acquired around 600 acres of land near Ahmedabad which will be divided between the two SEZs almost equally. Both the SEZs are expected to have around 45 plots each.

The location of SEZ is close to the existing manufacturing facility of the comapny outside Ahmedabad city near Sanand. According to Vyas, the intermediate and chemicals manufacturing capacity being expanded at Bawla facility of the company would provide support to proposed API unit in SEZ.