Serum Inst to invest Rs 1200 cr in Pune SEZ

Serum Institute of India, owned by Poonawala group and also country's largest exporter of vaccines and immuno-biologicals, is planing to invest Rs 1,200 crore in the first biotech special economic zone (SEZ) at Hadapsar, near Pune. The institute will set up six units in this SEZ .

The SEZ, which is being developed by Serum Biopharma Park, a unit of the serum institute is meant for biotechnology and pharmaceutical products. The Centre and the state government have offered the developer and units based in the SEZ exemptions from direct and indirect taxes.

Cyrus S Poonawalla, CMD, Serum Institute of India, said that the investments would be made in phases. The company would invest at least Rs 500 crore in the first phase. Serum Biopharma Park would raise funds through internal accruals as well as borrowings.

"The SEZ, which has currently been allocated 55 acres of land in phase I, would be expanded to 250 acres. The SEZ will stimulate economic activities by offering larger employment opportunities, attract substantial investments for export production and render services abroad to earn more foreign exchange", Poonawalla added.

He said that out of the six units in the SEZ planned by institute, a few units would be commencing production in the next 3-5 months. The total project is expected to be completed by 2010.

Poonawala said that about one billion doses of various vaccines were expected to be produced on an annual basis from this SEZ.

The new zone would manufacture vaccines for pneumonia, rotovirus, and combination vaccines for the entire range of meningitis and influenza. Oncological products for the US and EU markets are also expected to be manufactured at the new facility.

"The premises have already been pre-qualified by the World Health Organization," added Poonawalla. He added that the Poonawalla group would also offer partnership to other interested parties to put up laboratories and manufacturing units at the SEZ.

"The group may also lease out factories to others. There can be off-shore banking arrangement offering finance at international rates. The concessions offered by the government of Maharashtra on stamp duty, VAT, octroi etc to the developer as well as units functioning in SEZ will enable them to produce goods for exports at competitive prices," Poonawala said.