Piramal Healthcare Ltd has decided to discontinue operations at its manufacturing facility in Huddersfield, UK as a part of consolidation of global manufacturing assets. The closure will result in a one time cash cost of approximately Rs 70 crore which will be incurred in the year ended March 31, 2009. This is an intermediate/API site catering to the pharma solutions (custom manufacturing) business and is one of the manufacturing sites of Piramal Healthcare (UK) Ltd., the company's wholly-owned subsidiary in the UK.

Piramal Healthcare acquired Avecia Pharmaceuticals during 2005 and renamed as NPIL Pharmaceuticals (UK) Ltd (now known as Piramal Healthcare (UK) Ltd). The company had manufacturing facilities in Huddersfield, Grangemouth (Scotland) and Toronto (Canada). The remaining two sites at Grangemouth and Toronto will continue to operate and drive growth for the pharma solutions business.

According to company source the closure and increased acceptance of India as a custom manufacturing destination, profitability of the Pharma Solutions business is expected to increase significantly.