Unichem Laboratories, a Rs 477 corre leading pharma company, achieved sales growth of 16 per cent to Rs 141.70 crore during the first quarter ended June 2006 from Rs 122.3 crore in the corresponding period of last year. The net profit, however, declined 22 per cent to Rs 25.20 crore from Rs 32.30 crore mainly on account of one time gain of Rs 13.39 crore in the last year. The company sold its property at Jogeshwari during last period.

Unichem's UK subsidiary- Niche Generics Limited- recorded slightly lower sales of pound 2.38 million during Q1 of current fiscal as compared to pound 2.67 million.

Dr Prakash Mody, chairman and managing director, said, "The company has chalked out an ambitious multi-pronged strategy which includes setting up a formulation manufacturing facilities at country's one of the Specialised Economic Zone (SEZ), launching of additional products from Brazilian and South African subsidiaries, expansion in the manufacturing capacity of both formulations and bulk drug plants located at Goa, Ghaziabad, Baddi (Himachal Pradesh), Roha and commencement of production of API from Pithampur."

Addressing the shareholders at the 43rd Annual General Meeting (AGM), Dr Mody said the company plans to incur the total capital expenditures in the range of Rs 150 crore to Rs 175 crore over next two years. However, it does not include the investment in SEZ facilities and future acquisitions. Likewise, the proposed expansion will be financed through internal accruals and there will be no fund raising program, he added.