Pradeep Drug Company Ltd was incorporated as a Public Limited Company
at Madras on 26th March, 1990 and Certificate for Commencement of
Business was obtained on 21st May, 1990.
Pradeep Drug Company was originally started in 1983 by Mr. S.
Mohanchand Dadha as a sole proprietary firm. It had set up
facilities at Maraimalai Nagar in Tamilnadu to manufacture bulk drugs
like Erythromycin salts. Pradeep Drug Company Ltd took over the
entire assets and liabilities of Pradeep Drug Company, the above
proprietary concern of Shri. S. Mohanchand Dadha as a going concern
on 31.01.91 for a consideration of Rs. 1,34,43,653/-. The company
obtained necessary licenses issued by the Drugs Control Authorities
for the manufacture of bulk drugs.
The Company came out with the Public Issue of Equity Shares in June,
1992 for the purpose of setting up, a 100% EOU project at
Maduranthagam for manufacture of bulk drugs.
The project was completed and commercial production started in the
month of April, 1994. The Company holds the necessary licenses
issued by the Drug Control authorities for manufacture of various
bulk drugs at its factories situated at Maraimalai Nagar and
As per the provisions applicable to the 100% Export Oriented Unit,
the Company is permitted to sell only upto 25% of its production in
the domestic market. The products with which the 100% EOU was
started namely Analgin and Mebendazole were mainly meant for exports.
Whereas the Company has now suspended the production of Analgin and
shall be starting new products like Roxythromycin, Azithromycin and
Valproic Acid. The new products, as envisaged, have good demand in
the domestic market and, therefore, it will not be possible for the
unit to restrict
itself to sell only upto 25% of the production in the domestic
market. The Company has therefore opted for debonding the unit,
which gives greater flexibility to the Company to sell in the
The Company has received an in-principal approval from Government of
India, Ministry of Industry, Department of Industrial Policy &
Promotion, Secretariat for Industrial Approvals, EOU Section vide
their letter dated 28.04.95 allowing the Company to withdraw from the
100% Export Oriented Scheme for which industrial licence was granted
manufacture of Analgin, Furosemide and Mebendazol at Madurantakam in
The withdrawal from 100% EOU scheme shall be subject to the following
1. Applicable customs and excise duties shall be paid on the imported
and indigenous capital goods, raw materials, components, consumables,
spares & finished goods in stock.
2. The penalty imposed by the Appropriate Authority under the Foreign
Trade (Development & Regulation) Act, 1992 for non-fulfillment of
conditions of approval, shall be paid. In case an appeal against an
order imposing penalty is pending or proceeding under the Act have
not been finalised, a legal undertaking for payment of penalties that
may be imposed, would be executed with the JDG (FT) concerned.
3. In case the EOU unit wishes to continue its operations as a DTA
unit, it shall obtain necessary industrial approval in accordance
with the Industrial Licencing provisions, inforce, and it will be
required to comply with locational, environmental, and other rules
in force, as applicable to DTA units.