Karnataka-based medium sized pharma company, Bal Pharma is slating an investment between Rs.20 crore and Rs.25 crore to set up an Active Pharmaceutical Ingredient (API) plant in Karnataka. In order to garner quick growth, it is also open to adopt the inorganic growth path and is scouting for acquisitions in the API space.
The new facility would be the second in the API segment and fifth for the company. Its existing API plant at Bommasandra in Bangalore is awaiting the third successful TGA Australia certification after an inspection besides an EU GMP audit is on the cards this October.
“We would prefer to have the second API plant around Bangalore. The R&D division is located next to its API unit which is engaged in the development, scale-up and commercialization of high value APIs,” Archana Dubey Mitra, vice president, Exports, Bal Pharma told Pharmabiz.
Currently its API exports are across Europe, Africa, South America South Asia and South East Asian region. To the total turnover of Rs.116 crore, the API business registered an earnings to the tune of Rs.46 crore in fiscal 2010-11 compared to Rs.42 crore in the previous fiscal. The growth was garnered in spite of the shut down of China’s chemical intermediate plants which resulted in a loss of Rs.12 crore in the segment, informed Archana.
Another focus of Bal Pharma is to expand into Africa. Being present in the market since 1994, it has a comprehension of the region with a dedicated team and a strong presence across East, West and South Africa for formulations. It caters to Morocco and Algeria in north Africa for APIs only.
For fiscal 2011-12, Bal Pharma has lined up a slew of new formulations in cardiovascular and diabetes. It has also applied to the Drugs Controller General of India (DCGI) for approval of a new molecule for a combination drug. The strategy is to grow the branded formulations which generated revenues of Rs.70 crore in 2010-11. It is confident of better performance with the commissioning of Uttaranchal plant for tablets, capsules and ointment which is built according to ICH and PIC guidelines to meet the requirements of USFDA and European Medicine Agency. A couple of clearances from global regulatory authorities are awaited. The company is on a major brand building exercise in emerging markets. Its new marketing office in New Delhi set up early this year will also drive expansions to northern and eastern states.
In order to maximize its monthly capacity of 15 crore tablets, 2 crore capsules and 6 lakh ointment, it is in talks for Contract Manufacturing from international clients besides bagged orders from the three of the top ten pharma majors in India.