Integrated pharma player and India's largest Custom Research and Manufacturing Services(CRAMS) company Jubilant Organosys is setting up two 10,000 tonnes per annum(tpa) plants each for Niacinamide and 3-Cyanopyridine at its upcoming special economic zone in Bharuch in Gujarat.
While the company did not want to give out exact investment figures, R Sankaraiah, executive director, finance, Jubilant Organosys said that,"For FY 2010, the overall capex of the company including investments on SEZ were Rs 250 crores,and for FY 2011,the company’s total capex planned is around Rs 400 crore, that includes Rs 50 crores of unspent capex of FY 2010. A significant part of this will be spent on the SEZ".
He added that,"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, nutrition ingredients from the SEZ", Shankaraiah said. The company has 300 acres of land 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 that will 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 feed-stock. It is also the largest producer of Beta Picoline globally, a critical raw material for the manufacture of Vitamin B3.
The 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, which is also used extensively in the manufacture of various life science intermediates used for the production of pharmaceuticals and agrochemicals.
The company’s customer base is spread across 65 countries across the world that include pharmaceutical, life sciences and agro-chemical companies. Its key markets lie in North America, Europe and China. Jubilant's total revenue for the 2009-10 fiscal was Rs3362 crores. International revenues that comprises 65 per cent of its overall revenues stood at Rs 2454 crore, up by 15 per cent. The nutrition ingredients business during FY 2010 was at Rs 197 crores registering a growth of 19 per cent.
The company currently has an order book of $1 billion in the CRAMS business.
