Pochiraju Inds to set up bio fermentation plant in Hyd

Tamil Nadu-based Pochiraju Industries Limited, a producer and exporter of cut roses, is diversifying into biotech and biopharma sectors at an investment of Rs 47.57 crore.

It is currently in the process of setting up a bio fermentation and protein purification plant and a bio-parenteral unit in Hyderabad.

The company is entering the capital market for this purpose, and proposes to deploy the net proceeds of the IPO aggregating Rs 37.57 crore to part finance its diversification plans.

The remaining funds of Rs 10 crore are proposed to be raised through term loans from banks and financial institutions.

Addressing a press conference in connection with the company's forthcoming public issue, P Sudhakar, promoter and managing director of Pochiraju Industries, said the company had already acquired five acres of land at a cost of Rs 18 lakh per acre at the Shapoorji Pallonji Biotech Park on the outskirts of Hyderabad for the proposed bio fermentation and protein purification plant.

"Development work on basic amenities has already started and the first phase of production of recombinant bacteria and recombinant therapeutic proteins is expected to start by June 2007. The plant, which will have a production floor of around 18,000 sft, will be fully operational by the end of December," he said, adding that the plant would also be incorporated with a sterile facility for formulation and production of protein injectables.

Besides, he said, the company had proposed to manufacture pharma formulations, for which it had entered into a loan licensing agreement with Hyderabad-based Sunrise International Labs Limited.

The company's loan licensing facility has the capacity to produce 100 million tablets, 50 million capsules and 20 million bottles of liquid orals per month, he added.

The price band for the IPO has been fixed at Rs 25-Rs 30. The issue opens on January 15 and closes January 18, 2007.