The Hindu Business Line : Dr Reddy's to sell Goa facility

The decision was taken by the company board at its meeting here on Tuesday to take on record the unaudited financial results for the first quarter of current fiscal ended June 30, 2005. The board would seek shareholders' approval through postal ballot on the decision.

At present, Dr Reddy's has seven finished dosages facilities. Of this, five are located in India and two in the UK. The company also has six active pharmaceutical ingredients (API) facilities in India - all of which were USFDA inspected.

The Goa facility had commenced commercial operations only around six months ago. According to company officials, the decision to dispose of the formulations facility located at Goa was an outcome of the company's reassessment of its formulations manufacturing strategy and the taxation strategy.

When contacted, the Dr Reddy's Vice-Chairman and Chief Executive Officer, Mr G.V. Prasad, told Business Line that the company has now decided to set up a modern finished dosages facility at Baddi in Himachal Pradesh - lured by the attractive incentives being offered by the State Government. The company has already commenced construction activities for setting up a larger facility at Baddi, he said.

"The advantages and benefits of Baddi facility outweigh those offered by Goa. That's why we have decided to sell the Goa unit," Mr Prasad said.

Stating that the negotiations with certain parties for selling the Goa facility were currently at an advanced stage, Mr Prasad declined to divulge the details on the investments made so far on the Goa unit.

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