The Mumbai-based pharmaceutical company Arch Pharmalab Ltd has chalked out expansion plans with an investment of around Rs 145 crore for increasing its current capacity in R&D and manufacturing units. The expansion is expected to be completed by mid 2008.
Speaking to Pharmabiz, Ajit Kamath, chairman and managing director, said, "We have finalised our expansion plans and are working on it. We are investing Rs 10-15 crore in research and development centre. And Rs 60 crore at Gurgaon, Rs 40 crore in Sibra and Rs 30 crore in Watsol for the manufacturing capacity expansion. Currently, we have six labs at our R&D centre and we are adding six more new labs. At present, the strength of the scientists is 125 and we are willing to recruit further 75 more scientists by early 2008".
Inorganic growth is a strong component of the company's growth strategy. Recently, company has acquired Sibra and Watsol. The acquisition of Watsol Organics will strategically supplement and further augment our global leadership position in the isoxazole side chains business thus meeting the growing demand in the industry. The Sibra facility will enhance company's API business.
The Sibra facility is geared to manufacture variety of active pharmaceuticals ingredients (API). The plant is capable of handling multiple products and multiple reactions. The company will consolidate Sibra's businesses and introduce new high-value APIs in technical collaboration with European majors.
"We are also increasing our manufacturing capacity at Gurgaon with a total investment of Rs 60 crore. The company will invest Rs 40 crore in the phase I. The expansion programme is expected to be over by the end of 2007. Our expansion is divided into phases at Gurgaon. In the phase I, we are adding 300 kiloliter rector with the existing capacity of 75 kiloliter rector. For the phase II expansion we are further adding 200-kiloliter reactor in the same facility. Simultaneously, we are also increasing our manufacturing reactors capacity to 150 thousand kiloliter rector from 45 thousand kiloliter rector at Sibra with the investment of Rs 40 crore. Simultaneously, we are investing Rs 30 crore at Wastol for the manufacturing capacity expansion to 200 thousand kiloliter rector from 50 thousand kiloliter rector," Kamath said.
The company will install latest analytical equipment at R&D centre which will help them for the contract research and manufacturing activity also.