Hikal Ltd., the active pharma ingredient (API) and intermediary major, has invested a total of Rs 30 crore to commission its new facility for API production, upgrade of two existing manufacturing facilities and constructing a new cGMP pilot plant in Bangalore.

The new unit, to be inaugurated today, will exclusively manufacture small volume High potency APIs (HAPI). It has received the approval from US Food & Drug Administration which would allow it to enter the regulated markets. The investments come in the wake of the company's assertive efforts to portray its contract manufacture capabilities in custom synthesis, intermediates and APIs for disease segments like life style disorders and epilepsy.

The new plant will manufacture APIs which are steroid compounds required in small dosages. This is currently a niche segment in the pharma business. The company already has four plants in Bangalore and one in Maharashtra. The total investments pumped in for its all manufacturing facilities is around Rs 70 crore.

The 167 crore company in March 2004, went in for an acquisition of the Denmark-headquartered European pharmaceutical marketing and distribution company, Marsing & Co. a few months ago. Hikal has acquired 50.1 per cent shareholding. This would enable the company to enhance its turnover to Rs 500 crore in March 2006 and take pharmaceutical business to 70 per cent of the top line from the current level of 35 per cent, informed Jai Hiremath, vice chairman and managing director, Hikal Ltd at a press conclave here in Bangalore prior to the plant inauguration.

It has also gone in for an investment at Pune to set up a dedicated contract research facility at an investment of Rs 20 crore in the first phase. The facility is located at the Bio-Tech Park in Pune and is expected to be commissioned before 2005 end. The unit will have 100 scientists. Currently, the R&D wing at Bangalore is engaged in contract manufacture. With the Pune R&D unit, all contract research activities are expected to be off-loaded from Bangalore. Only in-house research developments are expected to take place in Bangalore, stated Sameer Hiremath, executive director, Hikal.

In order to have a substantial edge in the global research market for its collaborative R&D programmes, the company announced the formation of the Global Scientific Advisory Board represented by eminent scientists.