The Mumbai-based Lifeline Industries Ltd, a company engaged in the development and manufacture of intermediates and Active Pharmaceutical Ingredients (APIs) both for domestic and export markets, is planning to enter into the formulation manufacturing business in the current financial year, as part of its forward integration plan.

The company, which has doubled its capacity for manufacturing APIs and intermediates by adding two manufacturing facilities - one in Tarapore, Maharashtra and another one in Bidar, Karnataka - to its portfolio in the recent past, is currently looking for potential manufacturing facilities in the country for acquisition to enter into the formulations business.

The plans are to infuse around Rs 150 crore for acquisition of formulation facilities and the target is to buy manufacturing facilities, either two or three depending upon the deals coming up, which have approval from regulatory bodies in US and Europe, said Vinod Chitalia, chief executive officer, Lifeline Industries. The company is also exploring possibilities of external fund infusion to the extend of 70 per cent of the total project outlay.

"The potential of generic drugs market is growing rapidly with more than a US$ 100 billion worth drugs going off-patent in next three to five years. With our established strength in API and intermediate manufacturing, we next aim to grab the opportunities in formulations market," said Chitalia. He said that the company would be working on pain management, antibiotic and gastrointestinal disease management segments in the initial stage.

The Rs 625 crore-Lifeline Industries is expecting to reach a turnover of Rs 1000 crore by the end of current financial year, given that the capacity expansion and the foray into formulations take place smoothly within the fixed time line.

At present, the company has eight manufacturing facilities under its umbrella, including APIs and intermediates manufacturing units one each in Solapur, Mahad and Taloja while three manufacturing units including two API, intermediate facilities and another disposable medical devices plant are in Tarapur, Mumbai. The company added the Bidar facility for ibuprofen manufacturing by acquiring the Hyderabad-based Satwik Drugs Ltd for Rs 25 crore, in 2008, according to reports.