Shasun cutting costs with Indian intermediates plant

Trying to reduce material costs for its drug manufacturing, Shasun Pharmaceuticals plans to build an intermediates plant near Naidupeta, India.

Caught between rising costs and a falling rupee, the Chennai, India-based contract manufacturer wants to save raw material and shipping and handling costs, managing director Abhaya Kumar tells the Business Standard. Shasun also is one of the largest makers of ibuprofen.

"Manufacturing intermediates on our own will ensure security of supplies for key raw material than depending on some suppliers in China or other countries. Wherever we have a strategic position on a particular API, we will reduce dependency on imports," Kumar says.

The company will invest about $8.9 million in the plant, which produces APIs for some of its drugs derived from petroleum products, reports PBR. Construction has begun on a 50-acre site and the plant, which will have a capacity of 12,000 metric tons per year, is expected to start production in January. While the plan is to initially produce intermediates for its own use, Kumar tells the Business Standard that Shasun plans to eventually export some production.

The company has been on a bit of an expansion binge of late, with plans to invest $50 million to expand its manufacturing, and recently announced plans to build a new plant in Vizag, India.

- read the Business Standard story
- get PBR's take

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