Shasun Pharmaceuticals, the Chennai, India-based contract manufacturer that also has U.K. operations, is again talking expansion.
The API and pharmaceutical maker said last week it intends to invest Rs 250 crore, or about $50 million, to expand its manufacturing, including building a new plant in Vizag, India. The company said it will raise about Rs 200 crore (about $39 million) through cash and loans. It also received approval from its board to sell about Rs 50 crore (almost $1 million) in preferred stock to finance the rest, reports the Press Trust of India.
"We will invest Rs 250 crore in ongoing expansion plans of the company in FY '13. These include building a manufacturing facility in Vizag and increasing the capacity of existing plants," S Abhaya Kumar, Shasun managing director, told PTI.
It is unclear how much of the plans are part of an expansion it earlier announced. It was at about this time last year the company said it would invest Rs 100 crore ($20 million) in a two-year expansion of its production capabilities. It mentioned the Vizag plans in that announcement.
At the time, the company said it intended to devote most of the investment to bump up the capacity of ibuprofen derivatives to the current 300 tons annually from 180. The company claims to be one of the largest makers of ibuprofen in the world. It also said it was increasing its gabapentin manufacturing capacity to 720 tons from 420. Most of that work was slated to be completed last fall.
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