Being a leader is a matter of pride for all. And being market leaders of a particular product is an adornment that is worth flaunting. Chennai based company is a fine example of this leadership, particularly in the Active Pharmaceutical Ingredients (API).
The name ibuprofen has almost become synonymous with Shasun Chemicals and Drugs Limited (SCDL). This south Indian drug maker has been the undisputed leader in ibuprofen APIs for the past many years now. Apart from ibuprofen, Shasun also produces nizatidine, gabapentin, isradipine, ranitidine APIs too.
Shasun's products are sold in more than 150 countries across the world including Europe, North America, Latin America & Asia. Pre-formulations and value-added derivatives are also made in-house to lower the development costs of their clients, thereby providing them a competitive edge.
From the modest beginning in 1976, Shasun has acquired a worldwide reputation for the manufacture of APIs and their intermediates. At the helm of affairs spearheading the operations is the Whole Time Director of Shasun S Vimal Kumar. A graduate in Commerce and moreover a Fellow Chartered Accountant, he started his career with Shasun Chemicals and Drugs Limited and became director (Finance) of the company.
Vivek Narayanan spoke to Vimal Kumar on issues related to the API segment. Some excerpts are given below:
How do you see China as a potential player in the API segment?
China has shown its capacity in the realm of finished pharma products. Now it is gearing up to cater to the need of the world in relation to the API segment. They are growing fast in this area.
China, which has gained prominence in the non-regulated markets, is marking its presence in the regulated markets too. The case is same with finished pharma products as well as APIs. Many Chinese API companies have filed DMFs, ANDAs with USFDA. This shows that they are making a significant and concentrated growth in the API segment.
How would you compare India and China in the API segment?
Both the nations have an equal footing as far as API segment is concerned. Companies from both these countries are entering regulated markets. So I would say they are on equal grounds.
China has been exporting APIs to India at a lesser cost. Will this be a threat to Indian API in the long run?
China is not going to be a threat to India. There are lots of tightened regulations to be followed when we export products. Like for example we have to comply with the environmental safety norms etc. Both Indian as well as Chinese companies are complying with this. So this would push up the cost of production. So the cost factor will also not be so different.
What are Shasun's future plans for APIs?
We already have an API manufacturing unit in Puduchery. We will also be opening a plant in Vizag shortly. This is to cater to the need of contract services too. We will also develop some new APIs to meet the requirement of formulation needs of our proposed plant. The geographical focus would be regulated markets and we expect regulatory approvals to be in place in the near future.
Could you give some details about investments on the Vizag facility?
The new plant will be setup in the special economic zone of the pharma city in Vishakhapatnam. The company is investing around Rs 10 crore for the same. The work was delayed due to the issues related to the SEZ.