Unichem Labs Ltd is planning its third formulation facility at Baddi in Himachal Pradesh. The plant is expected to be commissioned by July 2006 and will have a capacity to manufacture more than 150 crore tablets per annum per shift, it is learnt.
Unichem will invest more than Rs 40 crore on its third facility, said Dr. P A Mody, chairman, Unichem Labs.
The company's second formulation plant at Baddi is under construction and is expected to be commissioned in April 2005. Unichem's existing manufacturing unit, its first plant in the region was commissioned long back.
Unichem has its other formulation units in Goa (75 cr tablets) and Ghaziabad in Uttar Pradesh (150 cr tablets). The total capacity of all the plants is 370 crore tablets per shift per annum.
Its Goa plant has been approved by UK MHRA, MCC (South Africa), WHO (Geneva) and TGA (Australia). The Baddi plant has been approved by UK MHRA and MCC (South Africa). In addition, the company has an API unit in Roha.
It currently uses all the three plants for its domestic and international requirements. However from now on, the company's plan is to reduce Baddi-based units' international exposure and redirect their focus towards domestic market.
"We want to make use of our Goa and Ghaziabad units purely for exports and Baddi for domestic marketing. This bifurcation will begin with the commissioning of second Baddi unit and complete with the third Baddi plant," said Dr. Mody.
Unichem has invested about Rs 35 crore in its second unit at Baddi. "We will be mixing our internal accruals with loans for our expansion related investment," said Mody.
The company has significant presence in anti-infectives, cardiology, psychiatry, neurology, anti-diabetics, anti-allergics, hormones and vaccines.
Exports currently account for 28 per cent of the company's turnover, which is expected to reach 35 to 40 per cent in the next couple of years, he said.
Unichem Labs achieved net sales of Rs 352.54 crore for the year ended March 2004 compared to Rs 292.72 crore in the previous year.