Divi Laboratories Ltd (DLL) is all set for the trial run of its bulk drugs pharmaceutical unit in Chippada village, near Visakhapatnam, in December. The Rs 260 crore turnover Hyderabad-based company has invested Rs 42 crore to set up the new unit. Promoted by Murali K Divi, the company has its bulk production unit and an R&D division at Longojigudem in Nalgonda district.

The new unit will produce active pharmaceutical ingredients (API) and intermediates like Naproscin and DL Naproscin, which are used in the making of antibiotics. According to company spokesman, almost 95 per cent of the production will be exported to the US, Europe, Canada and Japan. Besides, the unit will be manufacturing a variety of generic products such as Naproxen, Iopampidol and Diltiazem. The unit will also produce therapeutic products like Refocoxib and Etroicoxib (anti-inflammatory), Almotriptan and Sumatriptan (anti-migraine) and Pipisartan, Candesartan and Irbesartan (anti-hypertensive). The company has already firmed up marketing tie-ups with a number of multinationals like Abbott, Glaxo Wellcome and the Germany-based Boeringer HAM.

The company expects a turnover of Rs 100 crore from the new unit in the next financial year. The company also has plans to expand the production facility at the Vizag unit by investing another Rs 60 crore in the next four to five years.

Spread over 314 acres of land, the Vizag unit is being set up on the premises of Birla Periclase's sea water magnesia unit, which was closed down two years ago. The 'ready made' infrastructure enabled Divi to complete work on its new lab in a record time of eight months.

The company's main plant in Nalgonda district had achieved a turnover of Rs 260 crore with Rs 40 crore profit in 2001-02. During the current year, the company is expecting a turnover of Rs 300 crore. The plant has obtained ISO 9001, ISO14001, OHSAS 18001 and safety certifications. This plant was inspected by US FDA in 2000 and cleared for exporting APIs and intermediates to the US.

The proposed Pharma City at Parvada, near Visakhapatnam, if it materializes, will be a shot in the arm for Divi Labs. The city will emerge as a major pharmaceutical centre in the years to come. And in the process, early birds like Divi will stand to gain.