Ind-Swift Labs to up capacity by 40%: Interview
Active pharmaceutical ingredients (APIs) maker Ind-Swift Laboratories plans to raise its manufacturing capacity by 40% over the next two years as it looks to add a number of new products to its basket, its managing director said.
January 10, 2011 / 15:00 IST
Active pharmaceutical ingredients (APIs) maker Ind-Swift Laboratories plans to raise its manufacturing capacity by 40% over the next two years as it looks to add a number of new products to its basket, its managing director said.
The drugmaker would raise up to Rs 500 crore in two to three years to support the capacity expansion plan, NR Munjal, told Reuters in an interview late on Friday."Few key products are going off-patent in the next two years in the API space and we are all set to catch this opportunity," he said.The drugmaker currently has more than 65,000 kilolitres of annual API making capacity at its two units, he added."While some of the expansion would happen through internal accrual, we would raise funds via a suitable way for the rest," he said.The Ind-Swift Labs board, in August last year, had passed an enabling resolution to raise up to Rs 500 crore via various means.The APIs maker clocked net sales of Rs 780 crore in FY10 and sees the number crossing Rs 960 crore in the current financial year."Our sales in the next fiscal would grow stronger and we expect to report sales between 1,200-1,300 crore (Rs 1200-1300)," he said.Key APIs like Atorvastatin, Quetiapine Hemifumarate and Donepezil would go off-patent in two years and Ind-Swift hopes to supply them to Europe and Latin America, he said.It presently makes 40 products across 16 therapeutic categories, he added.Cost pressures not to hit marginsThe drugmaker does not expect rising manufacturing and operational costs to affect its profit margins, Munjal said."Cost pressures would continue to be a key factor and we have learnt to face it," he said adding the drugmaker plans to undertake de-bottlenecking at its manufacturing units and also add high-volume products to counter the rising costs."Our profit margins were about 12% in the last year and we would continue to post a similar trend in the years to come," he said.In the current year, Ind-Swift has set a target of Rs 85 crore of net profit, he said.Ind-Swift, which spends about 6-8% of its sales on research and development activities, is looking at the Japanese market to further push its sales."We have few products being launched in Japan and the market looks lucrative," he said.Shares of India-Swift Laboratories closed at Rs 105.6 on Friday in a weak Mumbai market. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
