The Tarapore manufacturing unit of bulk drugs major, Aarti Drugs Limited would be commencing commercial operations of its active pharmaceutical ingredients (API) within four months time, according to senior sources from the company.

The new unit, which is under renovation following its purchase from Metroni Drugs last year for Rs 1.2 crore would be the 7th such manufacturing unit of Aarti Drugs in Tarapore. The company earlier had 6 units in Tarapore and one in Sarigam, Vapi.

Accordingly, a total expenditure of Rs 50 crore has been earmarked for the project that includes physical assets such as buildings, machinery and other manufacturing facilities. Already the company is said to have set aside Rs 28 crore for starting the project while the rest would be spent phase-wise after beginning operations.

Revealing details, Satish Nachane, managing director of the company said that the investments would be pooled from the company's capital and also from loans from several banks. "Only a few days back, we received a funding of about $ 4.5 million from Singapore-based Rabo Bank for completing the project. The remaining amount is being funded by the company and 6 other banks," said Nachane.

The new facility at Taropore would enable total production capacity from all its eight plants to exceed 9000 tonnes per year, said Nachane while adding it would also lead to increase its products size to more than 30 by the end of next year.

According to Nachane, after beginning operations, the company's next priority would be to make the unit US FDA-compliant. "Once the new unit begins operations, we would be concentrating on according it US FDA status, which would be our prime focus for the year 2005-'06. This would enable more productivity and enrichen our contacts with buyers and partners," said Nachane.