Plethico Pharmaceuticals, the Indore-based Pharmaceutical player, is planning to invest around Rs 144 crore for a few of its projects which are expected to take place within a year.
The company's 144-crore expansion drive will be supported by Rs 110 crore, which Plethico plans to raise from stock market by floating the IPO.
Last month, the company filed its draft prospectus for its maiden public issue with SEBI. Plethico will list 3 crore and 4 lakhs equity shares through a 100 per cent book-building offer on the Bombay Stock Exchange and the National Stock Exchange, it is learnt.
The company will invest Rs 25 crore for upgradation of its Kalaria plant to conform to UK MHRA norms. The company would spend Rs 30 crore for acquiring a formulation plant and the land in Jammu. Later, the land will be used for contract farming. "The plant in Jammu will be used for manufacturing formulations for domestic market. The commercial production at the plant is expected to be started by May 2007," Sanjai R Pai, GM, international account & finance told Pharmabiz.
Plethico will set up an R&D centre at its Manglia plant in Madhya Pradesh with Rs 13 crore and Rs 20 crore will be used for setting up new offices at Vile Parle, Mumbai.
Apart from plant expansions, Plethico also plans to acquire major OTC brands or stake in companies in domestic market with earmarking Rs 28 crore. "We plan to buy one or two major herbal OTC brands having annual sales of Rs 30-35 crore. The products will be from cough and cold segment. We are also planning either to acquire stakes in herbal companies or the company itself," Sanjai R Pai added.
"Our Kalaria plant expansion is mainly aimed at regulated markets," Shashikant A Patel, chairman and managing director, told Pharmabiz adding, "We have developed it as to conform to UK MHRA and US FDA norms and we will apply for the MHRA inspection soon and expected the inspection will take place within an year. We are expanding our Kandla and Manglia plants for semi-regulated and un-regulated markets."
Its Kalaria plant, Indore, is manufacturing tablets, capsules, liquid orals, herbal lozenges, powders, granules etc. Its Manglia plant, Indore develops B-Lactam, cephalosporins, Rifampicin, effervescent tablets/ granules and enzymes.
Plethico plans to have an R&D tie-up with the Regional Research Laboratory (RRL), Jammu, a premier institute engaged in drug design and developments. The company has developed 9 herbal formulations with vegetarian capsules for the first time in India.
Recently, Plethico signed a Joint Venture MoU with a Kenyan company to set up a state of the art plant in Kenya. The presence in Kenya entitles access to East & Southern Africa (COMESA), which is a common market between 18 countries of the continent.
In 1996, Plethico entered into the international markets by initiating exports to Russia, CIS, Africa and Eastern Europe. CIS contributes around 33% and India sales account for around 31%. Africa is around 20%, rest 16% is contributed by South East Asia, Latin America & Gulf countries.
Plethico has over 400 formulations in more than 39 therapeutic segments. The company is also into niche segments like NDDS, Cardiovascular, Diabetology, other lifestyle drugs, nutraceuticals, medicated candies, food supplements, OTC/Consumer Products and Herbal preparations.