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| Vivimed Labs in Rs 130-cr expansion |
| CH Prashanth Reddy / Chennai/ Hyderabad Oct 14, 2009, 00:11 IST |
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Two greenfield plants to come up at Visakhapatnam and Hyderabad.
Vivimed Labs Limited (VLL), a manufacturer of speciality chemicals and pharmaceuticals, has embarked on a Rs 130-crore expansion plan to be executed over the next three years.
The Bidar-based company with corporate headquarters in Hyderabad is setting up two greenfield plants at Visakhapatnam and Hyderabad. Last year, it commissioned a Rs 30-crore manufacturing unit at Bontapalli, on the city outskirts, for production of hairdye intermediaries and imaging speciality chemicals.
VLL is a supplier of speciality chemicals to leading global manufacturers of beautycare products. Its clientele include Johnson & Johnson, L'Oreal, P&G and Henkel. It has also tied up with L'Oreal and P&G for research on new molecules.
On the pharmaceutical front, VLL’s oncology products have obtained registration in Ukraine and Russia. The company’s pharma division caters to the requirement of global pharmaceutical majors like Novartis, Cipla, Merck, Lupin, Glenmark and Wockhardt.
VLL managing director, Santosh Varlavar, told Business Standard that the company had targeted to achieve a turnover of Rs 1,000-crore by 2012-13 and accordingly it was expanding its facilities. Last year, it posted a turnover of Rs 276.12 crore and a net profit of Rs 19.35 crore. It expects a turnover of Rs 350 crore in the current financial year.
“The global slowdown did not impact our company much. We continued to register a growth rate of 30-35 per cent,” he said adding the expansion programme would be funded through internal accruals and issue of warrants. The company's board would meet shortly to finalise the warrants issue.
Varlavar said VLL had purchased 80 acres of land at Visakhapatnam for setting up a speciality chemicals manufacturing unit at a cost of about Rs 100 crore. The first phase of the project, involving an investment of about Rs 40 crore, would be commissioned by the end of next year. The second phase, costing about Rs 60 crore, would be completed by 2012-13. Following this, the installed capacity of VLL's speciality chemicals division would go up from the existing 650 kilolitres to 1,000 kilolitres a year.
Similarly, he said, VLL would be setting up a US FDA-compliant formulation plant at Choutuppal, near here, at a cost of about Rs 30 crore to cater to the needs of finished dosages for export requirements. The unit would be commissioned by the end of 2010.
In May 2008, VLL had acquired UK-based James Robinson Limited and certain associated assets from Yule Catto & Co Plc in order to increase its global presence in the speciality chemicals market.
According to Varlavar, 50 per cent of VLL's revenues currently are from exports. The export component will eventually go up to 75 per cent by 2012.
VLL’s scrip on the BSE closed at Rs 113.20 on Monday, up 9.96 per cent over the previous day's close of Rs 102.95.
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