The Ahmedabad based Torrent group is planning to set up a large capacity pharmaceutical manufacturing facility in North India. The facility, which is proposed to be in line with internationally accepted quality manufacturing specifications, is likely to be used to cater to the developed markets as the company is now seriously considering exploring US and European generic business.

Although the decision to move to the Northern region for the production capacity expansion is final, the actual location of the plant is not yet decided. However, the company sources confirmed that the location would be either in Himachal Pradesh or Chattisgarh. The reason to identify these two states for setting up the new factory is that the higher tax benefits and other incentives announced by the respective state governments, the sources added.

In the meanwhile, the company has also initiated capacity expansion drive by setting up a modern plant at Chattral in Gujarat, where the company's existing plant is located. On this project, the company will be spending around Rs.100 crore. This new setup will be ready for operation by end of 2005. The new facility is expected to manufacture tablets and capsules to begin with. The company is expected to produce 126 crore tablets exclusively for its US operations, which it plans to market through its new US subsidiary.

However, the total cost for the project outside Gujarat is yet to be worked out. According to sources the proposed project includes separate facilities for bulk as well as dosage forms. The sources added that the project cost would be much higher than the already initiated plant at Chattral, as the facilities is being built up to USFDA specifications. Torrent officials said that the project would be funded mainly through internal accruals.

In terms of API, the new facility would double the company's manufacturing capacity. While Torrent's current API plant has a capacity of 15 metric tones of bulk drugs per annum, it has a formulations capacity of 500 crore tablets per annum, 68 crore of hard and soft gelatine for capsules and around 300 crore injectibles.