By BS Reporter
Shasun Pharmaceuticals Ltd has set a target to double its turnover to Rs 2,000 crore by 2015.
“We have crossed the milestone of Rs 1,000 crore turnover for the year ended March 31, 2012, and our next target is to double it in next three years. Our plan is to become a billion dollar company in 2020,” said S Abhaya Kumar, managing director. He was speaking to reporters on the occasion of company completing 35 years of existence.
The company, which invested Rs 83 crore last fiscal in its operations, is planning to invest around Rs 250 crore for capacity expansion in 2012-13, including setting up of a multiproduct facility in Visakhapatnam, Andhra Pradesh, and upgrading existing facilities.
Kumar said they starting last year they were investing considerably into capacity building and other expansion activities.
It expects the contract research and manufacturing services (Crams) along with active pharmaceutical ingredients (API) business to contribute to the Rs 2,000 target. A large number of products going off patent in 2013, including sevelamer hydrate, sevelamer carbonate and colesevelam molecules for which the company has a first to file advantage to manufacture, would bring in considerable revenue, he added.
The formulations business under Crams is expected to grow from the current Rs 80 crore to Rs 400 crore, and its UK subsidiary, Shasun Pharma Solutions Ltd that is exclusively for Crams, is expected to clock in around Rs 500 crore in 2014-15 from Rs 350 crore at present.
The API business is expected to grow from Rs 400 now to Rs 600 crore while the API business for Crams and custom synthesis would go up from Rs 90 crore to Rs 250 crore by the fiscal 2014-15. The upcoming plant at Vizag would generate a business of Rs 300 crore by the time. The biotech business would grow from Rs 3 crore at present to Rs 25 crore.
By 2015, around 50 per cent of the target revenue would be from API and the rest from Crams.
The UK entity clocked a net profit of around 6.2 million pound last year, said Kumar.
The company is also looking at backward integration, including into some of the petroleum products for its products. Its multiproduct manufacturing facility for contract manufacturing services business in the SEZ of pharma park in Vizag, with an investment of over Rs 50 crore, is expected to commence commercial production before December, 2012.
It recently raised Rs 50 crore through preferential allotment of shares to Caduceus Asia Mauritius Ltd, a subsidiary of US-based healthcare investment firm OrbiMed Advisors, for capacity expansion by diluting around 11.93 per cent stake in the company. OrbiMed's representative is being inducted on the board of Shasun. It was a strategic investment to bring in expertise of OrbiMed into the company, rather than an investment to raise money for Shasun for its future growth, said Kumar.