PSU pharma firms expanding capacity, product basket
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30/05/2008
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Economic Times (New Delhi)
PUBLIC sector drug makers are set to regain a substantial share in the retail pharmaceutical market. These companies, which recently received fresh capital infusion from the government, are going in for a major expansion of their production capacity and product baskets. These pharmaceutical companies already have an assured market from government procurement. The recently revived Hindustan Antibiotics (HAL) will set up a massive Penicillin G plant helped by a technology tie-up with an overseas partner, it is understood. HAL, which is expected to start making profits soon, is likely to pump in close to Rs 100 crore for this. The unused penicillin production facility it already has will also be upgraded in a bid to make a major foray in the market. The company had stopped production of Penicillin G some time ago when prices crashed on account of cheap imports. The company has recently added new generation antibiotics like cephalosporins in its product portfolio and hopes the new penicillin plant would generate annual revenue of close to Rs 80 crore. Bengal Chemicals Pharmaceuticals, another state-run company, which recently received public funds to turn around, is planning to set up two manufacturing plants and upgrade another one. The company is likely to allocate about Rs 140 crore for this expansion. It has started setting up a new pharmaceutical manufacturing plant at Manithala and a chemical plant at Panihatt, both in West Bengal. The company will upgrade its existing facility in Kanpur, it is understood. Meanwhile, the government is planning to hire consultants to decide the right mode of reviving another anaemic company, the Indian Drugs and Pharmaceuticals. The company has massive real estate assets in cities like Hyderabad, Rishikesh, Gurgaon and Chennai. The ministry of chemicals is exploring ways to utilise this real estate for revenue generation. RIGHT PRESCRIPTION Hindustan Antibiotics will set up a massive Penicillin G plant with the help of a technology tie-up with an overseas partner Bengal Chemicals Pharmaceuticals plans to set up two manufacturing plants Consultants will be hired for reviving Indian Drugs and Pharmaceuticals