The Ahmedabad based Cadila Pharmaceuticals Ltd is planning to commence works on its Special Economic Zone (SEZ), exclusively for pharmaceutical sector, at Ahmedabad in next two months. The company has drawn plans to commission the project, in an area of 200 hectares in the third quarter of 2008, according to company sources.
The company is in talks with a few top foreign pharmaceutical companies which have shown interest in setting up the plants in the zone. These projects may come up either with 100 per cent direct foreign investments or through Joint Ventures. The SEZ, named as PhaEZ Park, will have space to API units, formulation and contract research organisation firms and is developed with the help of the New York based Deloitte Touche Tohmatsu, which has its branch in India.
Cadila has already initiated negotiations with two to three overseas law firms who have major pharmaceutical companies as their clients, informed Indravadan A Modi, chairman, Cadila Pharmaceuticals Ltd. "We are specially going for SEZ in Pharmaceutical sector, with an investment of Rs 800 crore, which is a rare method adopted in India at present. The zone is also expected to attract major or medium scaled foreign pharma companies, for some of them to initiate manufacturing activities or to utilise the outsourcing facilities. We are looking for companies which are ready to take atleast 10 acres in the zone, not for the companies eyeing smaller land area," Modi told Pharmabiz.
The project, to come up at Haripura village of Dhandhuka, Ahmedabad, has received official nod from the state and central governments and has commenced setting up basic infrastructure to attract investors. The park is designed with 'Plug and Play' facilities, with pre-installed infrastructure including power back up provision, high quality water, piped steam, security and safety system, disaster management plan, storm water conveyance and disposal, effluent and sewage conveyance, CETP zero discharge zone and a helipad or airstrip, for the companies to set up their plants and commence operations without delay, says the project plan.
The company will occupy 20 per cent of the total saleable area of 300 acres out of the 500 acres (two hectares), with its API and formulation facilities. The company, which is in pharmaceutical business from 1951, claims efficiency to provide any type of customised services to the players in SEZ including support on finding manpower and raw material supply outputs.
The Rs 700 crore Cadila Pharmaceutical is also planning to launch its first overseas plant at Ethiopia by June 2007, for which the trial production has already commenced through Joint Venture with a local company. The company has invested Rs 50 crore on the new plant and will be inaugurating the plant soon, said Modi.