SMS Pharma to invest about Rs 1000 cr in AP

SMS Pharmaceuticals Limited, the Hyderabad-based active pharmaceutical ingredients (APIs) manufacturer, is planning to gradually scale down production at its units in Telangana. On the other hand, the company has decided to invest Rs 950-1,000 crore in Andhra Pradesh over the next four-five years, informed P Ramesh Babu, Chairman, SMS Pharmaceuticals.
 
The company has decided to reduce production in its firve pharma units in Telangana due to administrative problems. “Last year, these units generated a turnover of Rs 300 crore,” he stated.
 
The company has two facilities in AP - in Vizianagaram and Srikakulam districts. It plans to invest Rs 400 crore in Vizianagaram unit expansion and Rs 350 crore in the Srikakulam unit. It has taken 40 acres at the Pharma City in Vizag where it would set up an API manufacturing plant with an investment of Rs 200 crore. This would be ready in two-and-a-half to three years, said Ramesh Babu.
 
Of the total required investment, promoters would contribute 35 per cent while the remaining would be from financial institutions, he said. “The company achieved a turnover of Rs 525 crore with about Rs 25 crore net profit during the last fiscal," added Ramesh Babu.