Sun Bio plans Rs 60cr unit in Hyd or Kolkata

Kolkata-based Sun Biotechnology Limited (SBL), a subsidiary of the Rs 1,500-crore Sarda Group of Companies, will invest about Rs 60 crore to set up another biotechnology unit in Hyderabad or Kolkata. SBL currently operates one biotechnology unit at Kolkata, which produces industrial enzymes and bio-pesticides.

"We want to produce more upgraded and some other new products in biotechnology. For this, the company is going to invest another Rs 60 crore to set up a new unit. We have shortlisted two cities "� Kolkata and Hyderabad "� and soon we will finalise it," Jagdish Sarda, chairman, SBL, told Business Standard.

Sarda group already has its presence in Hyderabad in the form of a software unit and a diagnostic kits manufacturing unit. Of the total investment of about Rs 60 crore, the company plans to raise half the amount through equity while the remaining half would be raised as debt from financial institutions.

In the current year, SBL has set itself a target of Rs 155-crore turnover. "During last fiscal, the turnover of SBL was Rs 125 crore, and of it exports were Rs 100 crore. In the current year, we are anticipating a turnover of about Rs 155 crore of which exports would form about Rs 125 crore and domestic sales about Rs 30 crore," he said.

By 2006-07, SBL will start production at the proposed new unit. "We hope to achieve a turnover of Rs 200-250 crore once the production begins," Sarda added.

SBL is currently listed on the Kolkata Stock Exchange. "We are planning to list our company on the BSE within 6-8 months. Last fiscal, we declared a dividend of 20 per cent to our shareholders," he said.

Sarda group is investing another Rs 5 crore in its Hyderabad-based Monogyne India Limited (MIL), which produces clinical rapid testing diagnostic kits. Last fiscal, MIL clocked a turnover of Rs 17 crore.