The Hindu Business Line : Elder Pharma to set up more units

IT will be a big act this year for integrated healthcare company Elder Pharmaceuticals Ltd (EPL) as it sets out to establish more manufacturing facilities, get active in the export market and foray into categories like `cosmoceuticals.'

And while such initiatives to capture the consumer's mindspace will take the battle into the backyard of companies such as Johnson & Johnson (J&J), Procter & Gamble (P&G) and Hindustan Lever Ltd (HLL), the Rs 235-crore EPL is not rattled. "We will first crawl before we begin to walk and run," quips Mr Alok Saxena, Director (International Division), EPL.

Recently, EPL got approval for an enabling provision to issue GDRs/ADRs, including foreign currency convertible bond, to the extent of $50 million — partly to fund its manufacturing facility in Himachal Pradesh. In an announcement to the BSE, the company said its EGM last week had approved increasing its authorised share capital from Rs 15 crore to Rs 20 crore.

Mr Saxena told Business Line that EPL's GDR, for an estimated $15 million, was likely by April. The funds would support Elder's HP plant, estimated to have a project cost of Rs 80 crore. The plant is slated to commence operations in 18 months and would cater to the domestic and export market. The company was looking to explore markets in Mexico and SouthEast Asia, among others.

Meanwhile, the company is also scouting for a site for another plant, possibly in Uttaranchal, he said. This would be an approximately Rs 10-Rs 15-crore plant.

Better known for its in-licensed product Tiger Balm and Shelcal, a calcium supplement, Elder seeks to bring in more products this year through its licensing agreements. The tie-up with Japanese company Tanabe Seiyaku is to market the latter's antihypertensive product, Imidapril. Its alliance with Osaka-based Fujisawa covers Ceftizoxime, an antibiotic that has already been launched, and Nilvadipine for hypertension, yet to be launched.

Meanwhile, Elder is set to launch two molecules in the Cardio Neuropsychiatry Segment (CNS) as well through alliances with two Spanish companies. Citicholine, patented by Spain's Ferrer, and Vimpocetine from the company Covex are slated for launch in India by March 2004. Elder expects to generate a turnover of Rs 25 crore - Rs 30 crore at the end of the third year from launch, company officials said.

Elder is looking to develop the `cosmoceuticals' segment, where products combine health and beauty aspects.

The company is tying up with Shenaz Hussain's company for a fairness product and expects to launch in July. "We will take the product into the mass arena, through manufacturing and marketing nationally," Mr Saxena said.

With more such over-the-counter products on the anvil, Elder would be in direct combat with the Emamis and HLLs.

More Stories on : New Projects | Diversification | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page