Syschem chalks out expansion plan

Syschem India Ltd today said it has embarked upon an expansion spree involving an investment of $12-15 million over the next two years.

The company, which recently announced its plans to enter the pharma business with its own Active Pharmaceutical Ingredients said, the expansion is being made to facilitate its smooth entry into the new sector.

Syschem said it has lined up three new molecules from the leading therapeutic categories. These molecules would be manufactured at the company's facilities. These APIs would be sold to pharmaceutical companies, for which it is already having talks for supply of its products, Syschem informed the Bombay Stock Exchange.

"In the first phase, the existing manufacturing and R&D facilities will be upgraded at an investment of 5 million dollars for launching new molecules. In the second phase, a new facility will be put up for capacity expansion and launching four new molecules at an investment of 8-10 million dollars," Syschem India MD Anil Nibber said. The first and second phases would be completed in the next one to two years.

Syschem is also open to FDI investment and is looking at domestic funding to raise 8-10 million dollars. It has tied up with drug firms for contract manufacturing of advanced intermediates for them.

A few of its major clients include Ind-Swift Laboratories, Ranbaxy Laboratories, Essix Biosciences, Morepen Laboratories and Unimark Remedies.