United Labs eyes eastern India market

Kolkata-based United Laboratories (India) Pvt is eyeing a larger chunk of the pharma market in eastern India.

The demand for pharma products in the government and private hospitals is estimated to be in the region of Rs 30,000 crore. These were mostly met by multi-national pharmaceutical companies with base in Mumbai or Delhi.

"We are trying to carve a niche and expand our presence in the east," United Laboratories managing director Biplab Sengupta said. The company produces digestive enzymes, cough syrups and health tonic.

The company, which recently obtained the Good Manufacturing Practice (GMP) certificate from the Drug Control authorities here, has plans to double the production capacity by 2010. The minimum bottling capacity at GMP certified plant over 19,000 square feet is 20,000 bottles per shift. The company presently operates in two shifts.

Currently, branded formulation of oral liquid and suspension products are manufactured at the plant. The company has plans to introduce a capsule and tablet division by September 2007.

"We have acquired 85 cottahs of land near Madhyamgram for the expansion programme. We have plans to bring analgestics, antibiotics and anti-pirative products for the eastern region market," Sengupta said.

United Laboratories has earmarked around Rs 10 crore investment for the expansion. It was also in talks with a large pharmaceutical company based in Mumbai for an exchange and product distribution agreement, Sengupta said without disclosing the name of the company. The agreement would be signed within six months' time.

He said, the company was eyeing around Rs 30 crore turnover over the next five years. "We are concentrating on building our base in Bihar, Orissa and the north east states," Sengupta said.

At present, around 100 small and medium pharmaceutical enterprises out of the 380 units in the state have the GMP certification.

West Bengal has formed a drug corporation to look into the sourcing the of pharma products of the government hospitals.