Chennai-based Shasun Pharmaceuticals Ltd would invest around Rs 100 crore over the next two years, including in capacity expansion for its existing product portfolio.
The company is also planning to increase its presence in the domestic market with its own branded products, and has set a revenue target of Rs 50 crore from this over the next three years.
Speaking to reporters on the sidelines of the company's AGM, company managing director S Abhaya Kumar said, “Of the Rs 100-crore investment, Rs 40 crore has already been invested.”
The company had also made arrangements to raise $6 million through ECB to fund the expansion, while the rest of the investment would be from internal accruals, he said.
The expansion, undertaken mainly to increase the capacity of derivatives of painkiller drug ibuprofen from current 180 tonne to 300 tonne per annum and capacity of gabapentin from 420 t to 720 t per annum. The capacity expansion is expected to be completed by September, 2011.
The expansion in ibuprofen derivatives would increase revenue from the products from current Rs 30 crore to around Rs 60-70 crore in 2012-13. It has also undertaken formulation capacity expansion from 1.8 billion tablets to four billion tablets. The company would also start operations at its Vizag plant in the near future, he added.
The company has launched its two of its own products in Tamil Nadu recently. It expects the own products business to grow from around Rs 2-3 crore this year to Rs 50 crore in the next three years. It is also entering into over the counter (OTC) business by launching a pain balm.
The company also expects the clinical trials of a drug of gold nanoparticles for use in cancer tharapy and medical diagnostics under a 50:50 joint venture with US based Nanoparticle Biochem Inc, with support of University of Missouri USA, to commence soon.
Its UK subsidiary has completed order booking of 91 per cent of its target for contract manufacturing for the current fiscal. It currently has an order book of 40.5 million pounds while the topline expectation is 44 million pounds and 10 per cent of that in the bottomline, said Kumar.
The subsidiary is expecting more business with around six molecules for which it has signed contract with the originator for manufacturing is in the Phase III studies.
The company is expecting to cross Rs 1,000 crore revenue on a consolidated basis for the current fiscal. Last year the company has reported a turn over of Rs 855.58 crore.
