Unijules plans IPO to set up new plants

Unijules Life Sciences is planning to go public to raise funds for an expansion, which will see the setting up of four new manufacturing plants.

Nagpur-based Unijules is in talks with Motilal Oswal, Axis Bank and ICICI Securities for the issue. The company hopes to file the draft red herring prospectus with the Sebi in a few months.

"We are planning to set up a US Food and Drug Administration (FDA)-compliant injectable plant, a herbal drug manufacturing plant, an extraction unit and an anti-cancer drug manufacturing faciltity in Nagpur with an investment of over Rs 200 crore. We wish to raise about Rs 100 crore from the capital market and the rest will be funded through debt and internal accruals," said Faiz Z Vali, chief executive officer.

Unijules currently has six manufacturing facilities in Nagpur. Started in 1932, Unijules manufactures herbal products and a wide range of formulations and niche speciality drugs.

"We expect to touch a turnover of about Rs 200 crore this year and the expansion can take us to a turnover of Rs 500 crore by 2010" said Vali.

Benzochem, a subsidiary of Unijules, makes anti-cancer and anti-malaria drugs. The company has over 200 drug registrations outside India and markets products mainly in semi- and non-regulated drug markets.

With the expansion, the company plans to enter the highly regulated markets of the US and Europe.