Drug-makers line up for space in Dishman SEZ

More than half a dozen foreign companies have come calling for space in Dishman group’s pharmaceutical and chemical special economic zone (SEZ) in Bavla, Gujarat. Dishman is also in talks with players such as Solvay, Johnson & Johnson, Lonza, Bayer and Merck for setting up their units in the pharma SEZ, sources close to the development said.

“We are in talks with 8-10 foreign companies. However, things are yet to be finalised. Overall, we expect to attract investments to the tune of Rs 7,000-8,000 crore in the SEZ,” a senior official of Dishman told Business Standard.

Meanwhile, on the domestic front, Dishman is in talks with Sun Pharma, Lincoln and Torrent Pharma to set up units. The company has an added advantage in the SEZ as it can cater to both active pharmaceutical ingredient (API) and fine chemicals units.

The SEZ, spread in an area of 400 acres, is being developed by Dishman Infrastructure for an estimated investment of Rs 500 crore. DIL is also close to acquiring another 450 acres in the vicinity for its engineering SEZ.

“We will invest about Rs 900 crore for development of the two SEZs in a phase-wise manner,” said J R Vyas, managing director, Dishman.

The company also aims to raise money from private equity players and is looking for an initial public offering (IPO) for the infrastructure company at a later stage.

“We are in talks with reputed firms such as IFC and IL&FS to finance the project,” said Vyas. The two SEZs will generate employment for 50,000 people. DIL aims to rope in co-developers for the two SEZs for which it has roped in Knight Frank and Cushman & Wakefield as consultants. DIL might even offer equity stake to the co-developer, the sources said. About 40 per cent of the engineering SEZ has been booked, said Sanjay Majumdar, member of the board of Dishman.

DIL has appointed Multimedia Consultants as their consultant for SEZ and engineering activities.

The upcoming SEZs are close to the proposed international airport at Fedra and Dholera port and Adnai group’s SEZ.

“About 20-30 per cent of the SEZ area has already been committed while about 10 per cent of the projects are in the pipeline,” said Majumdar. DIL is in talks with AIA Engineering, Harsha Engineering and Ratnamani group for setting up their units in the engineering SEZ.