Granules India acquires 50% in Chinese firm

Mumbai, 12th October'06:Granules India Ltd; a pharmaceutical formulation intermediates with complete vertical integration, today announced that it has signed a Memorandum of Understanding with Hubei Biocause Heilen Pharmaceutical Company (Biocause) of China. Granules has acquired a 50 per cent stake in the company to manufacture and sell Pharmaceutical APIs, starting with Ibuprofen. Hubei Biocause Heilen Pharmaceutical Co. Ltd. is one of the biggest Ibuprofen manufacturers and exporters in the world.

Under the agreement, the manufacturing assets of Biocause, located in Jingmen (Hubei province of The People's Republic of China) and currently manufacturing Ibuprofen, will be transferred to the Joint Venture, where both companies will hold a 50:50 stake. Granules India will be responsible for the development and growth of the market for the products manufactured by the Joint Venture.

Commenting on the synergies emanating from the JV, Xiao Yunhua, Director API of Hubei Biocause said "We are very glad to be associated with Granules India; the company has an excellent presence in the regulated markets and will thus become our growth driver. We also understand their strong business model built on PFIs and recognize the strength that we, as API manufacturers, will derive out of this partnership. We are proud to be associated with this new wave in the industry."


Granules India Managing Director, Krishna Prasad added, "Biocause's is one of the most sophisticated manufacturing sites that we have come across in China. Their high levels of GMP compliance, in addition to their capability to manufacture Ibuprofen for Europe and the United States, will provide us a strong manufacturing base in China for high volume APIs. This move is in line with our overall strategy of offering end-to-end solutions to companies on OTC products."

About Hubei Biocause Heilen Pharmaceutical Co. Ltd.

Hubei Biocause Heilen Pharmaceutical Co. Ltd. is the largest manufacturer and exporter of bulk Ibuprofen powder and tablets in China; it operates with a capacity of 3,800 metric tons and 4 billion tablets. The company also produces thousands of metric tons of bulk Ibuprofen substance and supplies to pharmaceutical companies from over 46 countries. The company's stock is listed on the Shenzhen Stock market (0000627). Biocause earned revenues of in 2005-06.

About Granules India Ltd.

Granules India Ltd. is a fully integrated pharmaceutical formulations manufacturer with the world's largest 'granulation' capacity. The company manufactures several strategic Active Pharmaceutical Ingredients (APIs) and multiple Pharmaceutical Formulation Intermediates (PFIs), which are distributed in 35 countries. It is foraying into manufacturing of tablets with a capacity of 6 billion tablets per annum. This facility will strengthen its presence in the pharma outsourcing space as it will have capabilities of offering a wide range of products beginning from APIs to finished dosages (coated/uncoated). Please visit us on http://granulesindia.com.