The 64-crore Bal Pharma is setting up a full-fledged formulation unit at Panch Nagar in Uttaranchal.

The investment for the new plant is around Rs 23 crore. In this connection, the company is now finalizing the design and layout with a consultant. The construction is expected to commence in November 2005. The new multipurpose plant will come up on 4.5 acres of land. It will have a production capacity of 12-15 crore tablets, 2.5 crore capsules and 18 tonnes of ointment. "We are targeting a time frame of one year for construction and the facility will be commissioned by December 2006," Shailesh Siroya, managing director, Bal Pharma told Pharmabiz.

While Uttaranchal plant will be dedicated for the domestic market, the company is awaiting for the land allocation from the Karnataka Industrial Areas Development Board (KIADB) to set up a facility to manufacture active pharmaceutical ingredients (APIs) at Bommasandra in the outskirts of Bangalore for the regulated markets. The Bommasandra facility will have an annual capacity of 48 metric tonnes and the company will invest of Rs 13.75 crore to set up the facility. Both plants would conform to US FDA and MHRA, informed Siroya.

The two new projects will see staff increase of 15 per cent to the current 1,000 workforce.