Diagnostic kit major, Bhat Biotech is all set to commission its new production plant and R&D centre which will help to augment production capacity and bolster its efforts into molecular diagnostics among others. It has slated an investment of Rs 4 crore and an additional Rs 2 crore is expected to be pumped in for further expansion. The funds are raised through internal accruals.
The new unit has come up within its existing complex of the company located at the Veerasandra Industrial Area off Hosur Road in Bangalore. The facility will be officially opened on June 14 and will be commissioned in early July.
The new unit spans over an area of 40,000 sq. ft over the earlier 25,000 sq. ft. The five floor unit houses the R&D cell and the remaining areas are earmarked for seven production units dedicated for the manufacture of specialized diagnostic kits for pregnancy, malaria, Hepatitis and HIV. With molecular diagnostics gaining popularity, the R&D centre will make efforts to develop a new line of automated and easy-to-handle kits.
The 15-year-old company has three production units with a total capacity of 1 lakh kits per annum. The seven units, will double the production taking it 2 lakh kits annually. Plans are underway to increase the number of units to 10 to produce 3 lakh kits a day. "We took up the initiative to expand going by the demand in the market for kits both within and outside the country," Dr Shama Bhat, chairman and managing director, Bhat Biotech told Pharmabiz.
"With this increased production capacity and advanced research capability, we plan to go aggressive on molecular diagnostic or DNA kits. Currently we have only treaded the antibody and enzyme based kits path. We are also looking at lab-on-a-chip which is the ultimate in diagnostics," he added.
While it has a strong research and production ability, it is in the process of collaborating with international companies in the life sciences space to market special reagents and enzymes, used by research centres and academic institutes in the country.
Out of the total 100 kits designed and developed indigenously, the fastest growing ones are pregnancy, HIV and malaria. Last year, Bhat introduced chikungunya test kit which is the only one-of-its-kind in the country and doing well.
The company which is a leading player in the domestic market caters to orders from the Union government, NACO and WHO. It exports to around 20 countries which includes parts of Europe: Turkey, Italy, South and Central America: Peru, Brazil Honduras, Mexico, four western African countries besides Asia and Far East.
"Over the years, we have grown significantly and this fiscal we have registered earnings of Rs 12.5 crore," said Dr Bhat.
Indian diagnostic kit market is valued at Rs 2,000 crore. Key drivers of the sector are lab automation, growth of healthcare sector, patient awareness and increased point of care testing.