Micro Labs to invest Rs.200 cr in new plant in Sikkim

Micro Labs to invest Rs.300 cr in new plants in Goa, Sikkim, plans 5 year growth strategy

Wednesday, January 12, 2011 08:00 IST

by Nandita Vijay, Bangalore

Micro Labs is planning to invest Rs.300 crore to set up an export oriented unit at Goa and another facility in Sikkim for local markets. The funds are sourced through internal accruals.

The company has chalked out its five year growth strategy where it has planned to foray the inorganic and organic growth paths to become a generic major going by the current demand for products from the regulated and emerging markets.

It has also introduced educative initiatives such as the Micro Knowledge Academy and Micro Leadership Academy. The new plants will also see manpower addition of 900 personnel taking the total strength of the company from the current 5,800 to 6,700 people.

The investment for Goa plant is Rs.100 crore and will be operational in September. The Sikkim unit is coming up at an investment of Rs.200 crore and will be commissioned by the year end. While the Goa unit requires 300 people, Sikkim will need around 600 personnel, Dilip Surana, chairman & managing director, Micro Labs told Pharmabiz.

“Goa plant will manufacture oral solids dosage forms with an additional capacity of 2 billion tablets and for Sikkim plant we will produce oral solids dosage forms with an additional capacity of 3 billion tablets,” he added.

For fiscal 2009-10, Micro Labs clocked a turnover of Rs.1,400 crore, of which Rs. 1,000 crore came from domestic market and balance constituted export earnings.

In addition to 60 countries that Micro exports to, USA and European countries have been the latest markets. “We expect to garner a Rs.4,500 crore turnover and be among the top 10 IMS pharma companies by 2013 – 14. Going by the infrastructure and human resources pool for production, research and marketing, we are confident of realizing the target.

On the inorganic growth front, it is looking for potential M&A deals of companies with a similar fit. Organic growth drivers will be formulation export to the regulated and markets beginning with CIS for the latter.

According to the Micro Labs chief, Indian pharma industry has a dual therapy focus: acute and chronic with a larger chunk shared by the former and balance by the latter. Micro is strong in anti pyretic, cardio vascular, diabetic and antibiotic segment. “We are working to become a generic major, storm into US and EU, tap emerging markets, strike contract manufacture deals, strengthen presence in the respiratory segment. Therefore, we will focus on building our existing brands, continue to introduce new brands and further strengthen our rural presence,” he added.