Sterling Biotech, Asia's largest and one of the top 5 manufacturers of pharmaceutical grade gelatin in the world, has reported excellent growth for the 12 months period ended December 2003. The company’s sales went up by 53 per cent to Rs 289.36 crore from during 2003 and its net profit moved up by 112 per cent to Rs 45.75 crore. . Improved product mix, push the operating profit at higher level at Rs 143.46 crore, representing a growth of 71 per cent. The board of directors declared equity dividend of 25 per cent subject to the approval at the AGM.
Nitin Sandesara, chairman, Sterling Biotech said: "We have, during the last fiscal, moved significantly forward in our strategic growth initiative to emerge as a globally competitive player. The acquisition (of Rallis’ gelatin unit) coupled with the ongoing expansion will help us consolidate our strong hold in the global gelatin industry. The improved performance bears testimony to the benefits arising out of these strategic initiatives; we are confident of sustaining this improved performance in the ensuing quarters too.”
During the last quarter, Sterling Biotech Limited and Rallis India Limited signed a Memorandum of Understanding (MoU) to transfer the latter’s Gelatin business to Sterling. Rallis, which has presence in the Gelatin business – with a manufacturing facility of 2200 tonnes per annum in Ooty, Tamil Nadu –agreed to transfer the same to Sterling so as to focus on its core business of agrochemicals, seeds and fertilizers. The sale has been concluded for a consideration of Rs 47 crore, in an all cash deal.
Sterling is presently implementing an expansion program at its existing facilities by adding around 6000 tonnes per annum (tpa) in the next 18 months. The expansion project would cost Rs 240 crore. It is being funded through internal accruals, loans and the GDR issue, which was concluded during the last fiscal.
Sterling Biotech's gelatin unit has received certification for ISO 14001 by DNV, Netherlands in July 2003. Sterling has been supplying pharmaceutical grade gelatin to some of the leading Pharma companies in the US and Europe. The company has bagged the award from CAPEXIL, Govt. of India, as the largest exporter of gelatin for the last four years.
Sterling Biotech has world-class facilities located at Vadodara, Gujarat, ranking at par with most modern plants in US and Europe. The plant has certifications like ISO 9002 and 14001, HACCP and Kosher. The plant enjoys all regulatory approvals from Europe and US. The pharmaceutical gelatin is used in capsule, for treating arthritis, cartilage related problems, blood plasma expander and bleeding disorder management and in tablets and vitamins.