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Last Updated : Apr 09, 2012 08:31 PM IST | Source: CNBC-TV18

Surya Pharma shuts down two plants on capital crisis

Mid sized drug manufacturer Surya Pharmaceuticals has landed into trouble with its rising debt burdens, forcing it to stall activities. It has shuts two plants on paucity of working capital, reports CNBC-TV18's Archana Shukla.


Mid sized drug manufacturer Surya Pharmaceuticals has landed into trouble with its rising debt burdens, forcing it to stall activities. It has shuts two plants on paucity of working capital, reports CNBC-TV18's Archana Shukla.


Surya Pharma has closed down active pharmaceutical ingredients (API) plants in Jammu and Panchkula (Haryana) and also trimmed workforce at both the sites.


The company has a total debt of Rs 1500 crore as rising interest cost and low cash flows dented profitability. SBI and Exim Bank which have exposure to the company have referred Surya Pharma to corporate debt restructuring (CDR) cell.

Meanwhile, the company has clarified that the Jammu plant is still under trial for production and has been shut down for now. However, the management is confident that it will have sufficient cash flows on approval of CDR and will bounce back to original production levels.

First Published on Apr 9, 2012 03:00 pm
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