Cipla, the third largest pharma company in India with consolidated net sales of over Rs 5,350 crore, has chalked out an expansion programme in its diamond jubilee year. Cipla is investing Rs 250 crore in a new R&D and administration facility at Vikhroli in Mumbai. Further, it is also putting Rs 200 crore for setting up API facilities at Bengaluru for anti cancer products and upgradation of its API facilities at Patalganga to scale up production.
The company's Rs 900 crore pharmaceutical formulations plant at its Special Economic Zone at Indore in Madhya Pradesh went on stream during April 2010. This project includes facilities for the manufacture of aerosols, resplues, liquid orals, pre-filled syringes (PFS), nasal sprays, large volume parenterals (LVP), eye drops, tablets and capsules. However, the company's SEZ project at Kerim, Goa continues to be suspended due to the stop-work order issued by the State Government and matter is currently pending before the Goa Bench of Bombay High Court.
Cipla is now planning to subscribe to the share capital of two biotechnology companies, located in India and Hong Kong, to obtain a 40 per cent and 25 per cent share respectively. The total investment will be around Rs 300 crore (US$ 65 million), in a phased manner, for setting up state-of-the-art facilities for biosimilar products in Goa and China.
The company invested Rs 30.64 crore for acquisition of US FDA approved manufacturing facility at Kurkumbh near Pune during May 2010.
The company's R&D expenditure for the year 2009-10 stood at Rs 262.68 crore and this worked out to 5 per cent of its total turnover. Its exports on FOB basis increased by 5.8 per cent to Rs 2901 crore from Rs 2,743 crore in the previous year. The company has long-standing key alliances for product development and supply with large generic companies in the developed markets and has over 6,000 product registrations in more than 170 countries. Cipla has incorporated wholly-owned subsidiary 'Cipla Singapore Pte. Ltd' in Singapore to assist logistic and distribution of its export business.
During May 2010, it acquired 100 per cent shareholding of a company for Rs 51.38 crore having formulations manufacturing facility at Sikkim with capabilities to manufacture tablets, capsules, oral liquids, injections, dry syrup and ointments/creams.
Its income through technological consultancy services for the year ended March 2010 reached at Rs 154 crore. The company is focusing more on income from technology transfer services.