Rs 300cr rev from Sikkim facility: Ipca Labs



In an interview with CNBC-TV18, AK Jain, ED, IPCA Laboratories, spoke about the benefits of the healthcare bill for formulation companies, and the company's business going forward.

Ipca Labs Q3 net profit up at Rs 58.2 cr

Q: You were also putting up a formulation facility at Sikkim when we last spoke with you, could you give us an update if the commencement has already taken place and what sort of revenue flow are you expecting from that facility?

A: In Sikkim we are investing around Rs 80 crore and at this facility construction work is in full flow and hopefully before December, this facility should be ready. We are largely putting this facility to take tax advantage long-term, which the company will get in terms of the 10-year tax holiday and 10-year excise holiday.

So it is a long period of advantage and at full capacity utilization that unit will also give around Rs 300 crore kind of turnover and largely the products produced from that particular front are either for the developing markets or for the Indian domestic market.

So the products will be produced for both these markets because we have both the US productions and European production coming from some other plant. So this plant will be purely dedicated for domestic as well as for the emerging markets.