Matrix Labs plans Rs 75 crore facility

Drug maker Matrix Laboratories has decided to set up a formulations facility at an investment of Rs 75 crore. The new Hyderabad-based manufacturing unit is being set up for contract manufacturing to global pharma companies primarily in the regulated markets including the US and Europe.

Besides a 1:1 bonus issue, the company also announced a stock split into a face value of Rs 2 per share from Rs 10 per share.

"We are in the process of signing a contract manufacturing deal with a multinational pharmaceutical company. As per the agreement, we would be manufacturing around 20 products for this company in our new facility. The plant will be commissioned in FY06," N Prasad, chairman & CEO of Matrix Laboratories, said in a press conference in Mumbai.

"Contract manufacturing of formulations will be a complementary business and gives us an opportunity to move up the value chain," he said.

The company has initiated a capacity expansion programme and expects to up production capacity to 1200 kl from 900 kl in 2004, around four times the capacity the company had in 2001 with three plants.

It currently has 8 manufacturing units. Prasad said that as on date, the company has filed around 27 drug master files and its total number would stand increased to around 40 by the end of the financial year.

Q2 net up 31% : Matrix Laboratories has posted a net profit of Rs 41.95 crore for the second quarter ended September 30 compared with Rs 32 crore in the corresponding quarter previous year, up around 31 per cent.

Net sales for the quarter stood at Rs 162.47 crore against Rs 134.87 crore in the same period previous year. The company announced a final dividend of Rs 6 per share for the financial year 2004.