Integrated pharmaceutical company Jubilant Organosys, also India's largest Custom Research and Manufacturing Services (CRAMS) company, is setting up two 10,000-tonne per annum (tpa) units each to make Niacinamide and 3-Cyanopyridine at its upcoming special economic zone (SEZ) at Bharuch in Gujarat.
While the company did not want to give exact investment figures, R Sankaraiah, executive director, finance, said: “For FY 2010, the overall capex, including investments on SEZ, were Rs 250 crore and for FY 2011, the company’s total capex planned is around Rs 400 crore, that includes Rs 50 crore of unspent capex of FY 2010. A significant part of this will be spent on the SEZ.”
Addng: "Our decision to set up a new facility for Niacinamide reflects our commitment to our customers and the Vitamin B3 market. Through our in-house research, we have developed a cost-efficient and environmental-friendly process for the manufacture of these products and we believe with our new capacity, we will strengthen our relationship with the existing customers globally, as well as develop new markets. We expect to export life sciences’ ingredients comprising advance intermediates, fine chemicals and nutrition ingredients from the SEZ.”
The company has 300 acres in possession at Bharuch for developing its SEZ and the first phase would come up over 160 acres. The upcoming Niacinamide and 3-Cyanopyridine plants, to be commissioned by the end of this calendar year, are part of the first phase of development.
Jubilant is currently ranked amongst the top three manufacturers of Niacin & Niacinamide (Vitamin B3) worldwide and is the only manufacturer of Niacinamide with complete backward integration to the basic feedstock. It is also the largest producer of Beta Picoline globally, a critical raw material for the manufacture of Vitamin B3.
Niacin or Niacinamide is an important life science ingredient that finds extensive usage in human nutrition (flour fortification, food enrichment, multi-vitamins), animal nutrition (poultry, dairy and pigs), pharmaceuticals (diabetes and cholesterol drugs) and manufacture of many life science intermediates. 3-Cyanopyridine is an intermediate for the manufacture of Niacinamide, used extensively in the manufacture of various life science intermediates for the production of pharmaceuticals and agrochemicals.
The company’s customer base is spread across 65 countries that include pharmaceutical, life sciences and agro-chemical companies. Its key markets are in North America, Europe and China.
Jubilant's total revenue for 2009-10 was Rs 3,362 crore. International revenues that comprise 65 per cent of overall revenues stood at Rs 2,454 crore, up by 15 per cent. The nutrition ingredients business during FY 2010 was Rs 197 crore, registering growth of 19 per cent.
The company has an order book of $1 billion in the CRAMS business.
