Remidex Pharma Pvt. Ltd, a dedicated contract manufacturing company in Karnataka, has plans to offer value added services in job works like stability test reports and provide technical innovations that would help save production costs of its customers. The company made investments of Rs 20 million to upgrade machinery and service equipment.
"Initiatives to improve efficiencies will help to increase our customer base and we are looking at increasing our business", Dr. Dayanand S Rao, CEO, Remidex Pharma told Pharmabiz.
While the contract manufacturing units in the country received a jolt in early 2005 with the Union government setting up excise free zones at Himachal Pradesh, Uttaranchal and Jammu & Kashmir, Remidex passed through excise duty regime unscathed. Its customers continued to give it the orders for production. In fact it bagged an award from the central excise department for being the highest excise duty payer of Rs 20 crore in the above Rs 5 crore company category in 2007.
The company which started operations in 1981 is a Schedule M complaint facility with multinational customers approving its unit located at Peenya Industrial Area in Bangalore. In 2003, it invested Rs 110 million to further enhance its GMP standards. Some of its leading customers include Glaxo SmithKline, AstraZeneca and USV. The facility has a capacity to produce 25 crore tablets, 5 crore capsules and 20 lakh bottles of liquids per month.
In order to gain a wider presence in the drug production arena, Remidex in 1990 set up Sanil Pharmaceuticals Pvt. Ltd. in Bangalore to undertake contract manufacture of ayurveda drugs and nutraceutical products. It also went on to set up Ishaan Labs which is a dedicated anti-diabetic formulation unit for USV products.
Among the challenges before companies like Remidex in the contract manufacturing is to meet the highest manufacturing standards, quality parameters in products, meeting deadlines in delivery schedules and seeking the required margins during negotiations, informed Dr Rao.
While the contract manufacturing companies are experiencing difficult times, Remidex is optimistic about its future performance going by the plant infrastructure and potential of our human resources. Of course, we had lined up a couple of ambitious plans to expand but curtailed our efforts. We gave up a total of 8 acres of land at Dobspet and Nelamangala in the outskirts of Bangalore meant for future expansion, said Dr Rao.
However, the company needs to continue to go in for advanced production technology to keep pace with the global customers needs. Between 2005 to 2007, survival for Remidex has not been a problem because it was strong in infrastructure and expertise he added.
On the recent announcement from the Finance Ministry to remove the excise duty exemption for peripheral units, Dr Rao stated that was a streak of light and if the same was applicable for contract manufacturing units, then Remidex could confidently foray its future expansion in facility and business.
Contract manufacture in India will continue to exist and it is a growing opportunity for companies to encash. Pharma units can attract global orders because of top-class facilities and the quality standards that can match international requirements. While foreign companies are looking at innovative new products developments, Indian contract manufacturers have the capability to meet the stringent demands, averred Dr Rao.