Lake Chemicals Pvt Ltd, a leading active pharmaceutical ingredients (APIs) and intermediates major in Karnataka has slated a Brownfield expansion plan as part of its next phase of growth. The company is expected to invest between Rs 5 to Rs 7 crore to double its production capacity. A major portion of funds is through internal accruals and remaining will be a debt component.
The Bangalore-based company engaged in the production of anti-psychotropic and ophthalmic APIs and intermediates is now looking at the international arena to specifically target the regulated markets of US and Europe. It has devised a strategy for the next three years to increase its additional volumes and products for these new markets. In this connection, Lake Chemicals would also file four more drug master files (DMFs) in the anti psychotropic segment and Certificate of Suitability to enter the US and Europe region respectively. The company's WHO GMP complaint unit, which is constructed according to US FDA standards, is awaiting an audit by early 2009.
"This additional capacity expansion will allow us to augment the number of products and help to increase revenue generation by 30-40 per cent over the next three years," Manoj C Palercha, managing director, Lake Chemicals told Pharmabiz.
The company which registered a turnover of Rs 25 crore in March 2008 has a 70:30 ratio of exports to domestic market sales. The company has a solid customer base in 30 countries with a 10 per cent share in each of these regions.
Globally the psychotropic drug segment is the second largest market after diabetics. In fact, Lake Chemicals is one of the major producers of Benzodiazepine series. It is also an approved source for multinational drug majors like Wyeth for Lorazepam, Haloperidol from Searle and lonazepam from Roche- through Nicholas Piramal.
As part of its plan for growth, it will increase its product offering in the ophthalmic space for anti glaucoma conditions. There is a huge market for ophthalmology APIs going by the increasing glaucoma cases resulting not just because of age-related conditions but disorders like diabetes, stress and cardiac conditions.
The company has a manpower of 150 and is equipped for product development with complex chemistry.
According to the Lake Chemicals chief, the market for APIs across the globe is transcending from a price sensitive phase to a quality conscious one. "This will allow companies like ours to capitalize on the demand as we have stringent systems in place in research, development, quality control and production. As a part of our documentation efforts, we offer value-added services like synthesis of impurities which has been much sought after," he added.