Pochiraju Industries Ltd., a Hosur based producer and exporter of roses and cut flowers will set-up a bio-parenteral, Bio-fermentation and protein purification unit in Shapoorji Pallonji Biotech Park near Hyderabad. The company will invest an amount Rs 47.57 crore to build up the facility.
At the upcoming facility, Pochiraju will develop and produce fermentation and recombinant based bio-generics. The unit will be equipped with world-class facilities to produce and maintain recombinant bacteria and therapeutic proteins. The plant will also have sterile facility for formulation and production of protein injectibles conforming to the WHO and CGMP standards.
In this regard the company has recently acquired a five-acre plot in the phase III of the SP Biotech Park to set up biogenetics, powder parenterals and liquid injections manufacturing unit. Total production floor will be developed in 18,000 square feet area.
Announcing the IPO to enter capital market, P Sudhakar, managing director, Pochiraju Industries Ltd., said that through its new facility the company is planning to enter formulation and contract manufacturing segment and will limit its operation to tablet, capsule, pre-filled syringes and liquid orals.
The IPO is aggregated at Rs 37.57 crore through 100 per cent book building process. The net proceeds of the issue will be deployed to partly finance the expansion plans involving Rs 47.57 investment. The remaining amount Rs 10 crore will be raised through banks and financial institutions.
The company further disclosed that it is planning to manufacture pharma formulations under loan licensing for which it had entered into an agreement with Sunrise International Labs Limited. Sunrise's facility is situated at Charlapally near Hyderabad.
Asked about the reason to enter pharmaceuticals, Sudhakar said, 'It may sound a bit strange, but we have a strong team that has over 20 to 30 years of experience in pharma industry and is efficient to handle any critical project related to bio-pharmaceuticals. And more than this we have invested our complete three years to take this decision to enter formulation segment".
The issue is to open on January 15, 2007 and will close on January 18, 2007.