Lupin Lines Up Forays In Russia, China, Sa

The company will tie-up with the Anti-Biotic Research Institute, St Petersburg, for a subsidiary in Russia, while it is in the final stages of negotiations with manufacturers in China and South Africa.

Lalit Kumar, president, international business, Lupin Laboratories, said the joint ventures form part of the pharmaceutical company's Rs 100-crore expansion plan over the next one year.

We had to create extra facilities in any case because we are now functioning at more than 100 per cent installed capacity, Kumar said.

He said the three foreign partners would provide only land and other utilities to the joint ventures and Lupin Labs will hold the majority stake in each project.

 

The bulk drugs or the active ingredients that would be used to manufacture products in the overseas units will be sourced from India.

The three projects have been cleared by the respective Food and Drugs Administrations (FDA) in each of the countries.

The subsidiary in China will produce Cephalosporin Injections (used during pre-and post-operations).

Lupin is the only manufacturer of this drug in the country and the market for this product in China is huge, Kumar said. Estimated to cost Rs 25 crore, the unit will be commissioned in a year.

Lupin's Russian venture with the Anti-Biotic Research Institute, St Petersburg, will produce oral products to fight tuberculosis.

Kumar said an in-principle agreement has already been signed with the Russian company and production is likely to commence early next year. The unit is estimated to cost about Rs 4 crore.

The company's South African unit will also manufacture oral products. We will begin with anti-tuberculosis products and then expand the range, Kumar said.

Lupin has already firmed up a pact with a local South African company for the joint venture and islikely to hold 60 per cent of the equity.

The cost of the project will be Rs 4 crore.

The joint venture partners will also help market the products in the region.

Besides, Lupin will also market the product as through its wide network of offices abroad.

Last year, it had entered into an alliance with Merk Generics of Germany to market its injectibles and other products in Europe.>