Jb Chem To Set Up Rs 15 Crore Unit In Daman

JB Chemicals & Pharmaceuticals has decided to set up a Rs 15 crore manufacturing unit in Daman to produce the Doktor Mom range of cough lozenges and tablets.

The project will be financed through internal accruals. Profits derived from the new facility will be tax-free for the first five years from financial year 2003-04 and 30 per cent of the profits will be tax-free for the next five years.

This is expected to enable JB Chemicals to cater to the increasing demand for its products in the domestic and foreign markets. The project, which will be set up in line with the company's vision of achieving a turnover of Rs 500 crore by 2005, is expected to go on stream by 2003.

The project will have a significant impact on the bottom line and earnings per share in the years to come. The company is expecting a 15-20 per cent increase in the sales of the Doktor Mom range of products.

At present, the company has 11 manufacturing facilities in four locations in India to produce a range of bulk drugs, intermediates, pharmaceutical specialities and herbal remedies.

"We are confident of achieving a turnover of Rs 500 crore by 2005 by expanding margin by launching value-added products, product innovation in fast-growing therapies, leveraging top-of-mind brand recall of Unique and enhancing its brand equity, and improving prescription strike rates," said J B Mody, chairman, JB Chemicals, at the company's annual general meeting held today.

The shareholders of the company at the AGM have approved a final dividend of 50 per cent including a jubilee dividend of 15 per cent, taking the total payout for fiscal 2001-02 to 75 per cent. The total dividend payout stands at Rs 12.45 crore, which is higher by 41 per cent compared with the previous fiscal.