Leonid Chemicals is in talks with two international business partners to expand its global foot print in the US and European Union markets. As part of its regulated market strategy, it will offer customers pharmacopoeia grade of chemicals. So far, the company has been marketing ‘passing material’ grade chemicals. It is now getting ready to provide international and Indian customers ‘certified materials’ for which the licensing process is on.
The company has also planned around Rs.2 crore investment to fully automate its production and expand its quality control wing. The funds would be sourced through internal accruals.
“There is considerable demand for labs chemicals from India from the stringent western markets and we intend to maximize the opportunity. The country has been acknowledged for its expertise in chemistry. Qualified scientific pool, English speaking workforce which maintains documentation records for exports and the patent regime enforced since 2005 are factors which are driving the lab chemical business”, SR Sudhakar, director, sales & marketing, Leonid Chemicals (P) Ltd. told Pharmabiz.
India’s strengths in chemical synthesis and process engineering, availability of highly-skilled personnel at an affordable cost will now drive the growth of the lab chemicals industry and Leonid also wants to play a key role here, he added.
In 2009, the company had invested Rs.5.5 crore to commission a HPLC solvent facility which led to expand its range from the current two products of methanol and acetonitrile to a total of 14 products taking it to the next level of growth.
Leonid is known for its HPLC premium range of products which are in demand in the US and Europe by the pharmaceutical industry, analytical testing and environmental analysis sectors.
Right now in the Rs.1,000 crore Indian lab chemicals segment, Leonid holds sway in the southern markets. Its key strengths are research, quality control efforts and a range of 3,500 products which are backed by evidence-based scientific data. The company has extended its marketing tentacles to western and northern region besides Kolkata in the east.
In order to access the national market at a faster turnaround pace, Leonid has the logistics that helps cater to quick supplies, he said.
Besides lab chemicals for the pharma and biotech industry, there are also newer market opportunities in solar voltaic cells which will aid further growth of the sector.
The Indian market has a large presence of multinational companies like Thermo Fischer, Merck Specialties and Rankem. In addition, there are around 30 local players including Mumbai-based SD Fine Chem in Mumbai and Spectro Chem. Since we are a key supplier in the markets of south India, we expect encouraging growth prospects in the coming years, he said.