Mumbai-based J.B. Chemicals & Pharmaceuticals will discontinue manufacture of its cough and cold lozenges on contract basis once it commences the operation of its new manufacturing facility at Daman. The new formulation plant with an annual capacity to manufacture about five crore lozenges is likely to be commissioned by July this year.

The company currently outsources about two crore lozenges per year for both its domestic as well as international requirement. Speaking to www.pharmabiz.com, Shirish Modi, Director, JBCPL, informed that the company will begin phasing out of contract manufacturing soon after the commencement of the Daman facility and will achieve the total phase out within three months.

The decision of the company is absolutely keeping in view the export potential in the semi-regulated, regulated and highly regulated markets. Post-2005, the global generics market will be on a rise. MNCs would give extra emphasis for outsourcing less expensive generic products from the third world countries like India, South America, and South East Asia. Therefore it is essential to conform to the revised Good Manufacturing Practices (GMP) and also the globally accepted production standards, which the toll manufacturing companies are unlikely to offer.

Apart from GMP adherence, the company also sees certain cost advantages in discontinuing the outsourcing business. "Being an Export Oriented Unit (EOU), our Daman plant will attract about 100 per cent tax exemption in the initial five years. Thereon, for the next five years, we will get tax advantage of about 30 per cent on our income," he said.

J.B. Chemicals has got aggressive plans for its lozenges. It is all set to launch its "Zecuf" range of cough lozenges in the South East Asian markets comprising of countries like Malaysia, Philippines, and Myanmar, Sri Lanka, Iraq and Algeria. Zecuf is the renamed version of the company's Doktor Mom range of cough and cold products consisting of lozenges, balms and cold rub products. Doktor Mom, JBCPL's star brand, caters predominantly to the Russian and CIS markets presently.

Along with lozenges, J.B.'s new plant will also manufacture tablets, mainly in the anti-ulcer, cardiac, cough and cold and antibiotic segments. It has 11 manufacturing facilities at four different locations in India. Although exports will be major thrust of the company's plans, it is also doing well domestically. About 10 per cent of J.B.'s overall sales come from bulk drugs. Last year, company's products like Metrogyl, Rantac, Nicardia and Ofloxacin were ranked among the top 200 selling brands in India.