Arvind Remedies' new plant to start by year-end

Chennai-based pharmaceutical company Arvind Remedies Ltd is expecting its manufacturing unit, being set up with an investment of Rs 190 crore at Kakkalur near here, to begin operations by the end of the year.

"Majority of the investment is through borrowings, while around Rs 50 crore is through equity from the promoters and corporate bodies," said B Arvind Shah, managing director and chief executive officer of Arvind Remedies Ltd.

The company is also looking at exports to Southeast Asian, African and Latin American countries in near future, he added.

The facility would manufacture betalactum and cephalosporin drugs for gynaecology, diabetes and cardiac medicines.

The company clocked revenues of Rs 705 crore in March 2013, of which 69 per cent business came from institutional sales, 26 per cent from ethical markets, three per cent from the contract research and manufacturing services (CRAMS) and two per cent from international operations.

However, with the new facility and products in place, the company expects institutional sales to be around 40 per cent of the business, ethical marketing to go up to 40 per cent and the US business to account for 10 per cent of the revenues in the next five years.

The international business and CRAMS would grow to five per cent of the revenue by that time, he added.

The company, which had acquired Uttarakhand-based Coronet Labs Pvt Ltd last year, mainly for contract manufacturing, is also looking at acquisition of brands and companies in its focus areas, which includes gynaecology, diabetes and cardiac medicines.