GlaxoSmithKline Pharmaceuticals (GSK), a Rs.3,000 crore leading pharma multinational company, has approved the sale of the land measuring approximately 60 acres located at Thane, Maharashtra to Oberoi Realty Ltd for a consideration of Rs.555 crore. During the year 2017, it completed 93 years of operations and sale of land will help to upgrade facilities and expansion programmes. The company has also its manufacturing facilities at Nashik and setting up new facility at Vemgal, Karnataka with an investment of Rs.1,000 crore.
The new facility is likely to commence production in 2018 and will supply a range of solid dose form products. The new facility will produce more than 8 billion tablets and 1 billion capsules per year. GSK has also invest Rs 115 crore to set up Eltroxin manufacturing facility in its existing Nashik facility. The new Eltroxin facility will be fully operational in 2018. The company is also planning to upgrade the dermatologicals and tablets facilities at Nashik site.
Currently, GSK scrip is moving around Rs.2,400 on the BSE as against its yearly high level of Rs.2,999. Glaxo Group Ltd,UK and associates are holding 75 per cent stake in equity capital of Rs.84.70 crore.
The company's net block (property, plant and equipment) stood at Rs.252.71 crore as at the end of March 2017 as against Rs.204.04 crore in the previous year. Free hold land and leasehold land amounted to Rs.54.90 crore as compared to Rs.54.53 crore in 2015-16. The net block includes Plant and equipment to the tune of Rs.123.99 crore as against Rs.86.80 crore, a growth of 42.8 per cent.
For the full year ended March 2017, GSK's net sales increased by 5.8 per cent to Rs.2,927 crore from Rs.2,766 crore in the previous year. However, profit before tax and adjustments declined sharply by 19.2 per cent to Rs.465.46 crore from Rs.576.08 crore.