Kemwell, the contract manufacturing and development services major which caters to global companies has slated an investment of Rs 40 crore to set up a state-of-the-art new non-sterile liquid facility in Bangalore.

The funding is partly through internal accruals and debt. The construction has commenced and the facility is scheduled for completion in May 2011.

The company already has a non-sterile liquid plant with a capacity of 100 million bottles a year. But this facility will cease to function because the new unit is designed with a capacity to produce 250 million bottles annually, Anurag Bagaria, vice president, Business Development, Kemwell told Pharmabiz.

As one of India’s largest liquids manufacturers, catering to the top five of global pharma majors Kemwell has the core competencies in this space. The new facility adheres to international quality standards, is highly automated and flexible to service both large and small requirements of the company’s current and new customers.

Kemwell operates two sites at Yeshwantpur and Neelamangala in Bangalore. Now all its manufacturing operations will be at one location in Neelamangala. The consolidation will reduce costs while maximizing the efficiency in terms of manufacturing, inventory management and supply chain. "The move also gives us an opportunity to re-look at the entire liquids manufacturing process. Working with consultants, the new facility is being designed with a lean manufacturing layout, streamlining the manufacturing methods to maximize value and minimize waste in the process. We are also collaborating with our customers at the design stage itself to ascertain that we meet their needs to the fullest extent possible,” said Bagaria.

The company has five production plants between India and Sweden. Four in India at Bangalore produce orals solids (capsules and tablets), semi oral (ointment) and two liquid facilities. The Sweden unit at Uppsala was acquired from Pfizer in August 2006. The unit inspected by US FDA, EMEA and Japanese regulatory authorities, now caters to over 80 markets globally.

The total personnel strength at the two locations is 1,000 of which Kemwell operations in India account for 800 people. With a cent percent focus on contract manufacture, Kemwell has no branded products of its own in the market which prevents any conflict of interests with its customers.

In June 2009, the company had slated an investment between Rs 200 crore and Rs 250 crore to set up a new biopharmaceutical manufacturing plant in Bangalore in a strategic collaboration with Boehringer Ingelheim, Germany which will be ready in 2011. It is also expanding its Pharmaceutical Development Labs which are present on this site to meet the contract R&D needs of its existing and new customers.

For the future, in its quest to spur growth, Kemwell will look at both organic and inorganic paths. Possibilities for mergers/acquisitions in the US and Europe will help to increase presence in these regulated regions, said Bagaria.

Commenting on the current scene for contract research and manufacture in the global markets during the recessionary phase, Bagaria said that small companies and start-ups felt the cash crunch. With regards to manufacturing orders, big pharma maintained volumes.