The Hindu Business Line : Strides Arcolab shuts down US unit

Strides Arcolab Ltd has announced closure of its loss-making manufacturing facility in New Jersey. The facility was making over-the-counter and nutraceuticals (or dietary supplements) for soft gelatin products in the US through the subsidiary, Strides Inc. The company is now in talks with interested parties to dispose of the asset. “The facility incurred an operating loss of approximately Rs 28 crore ($7.10 million) in the financial year 2007. The changing US regula tory framework for OTC and nutraceutical products does not make the plant viable anymore,” a Strides release here said. “The softgel business continues to be attractive for Strides and its Indian plant is fully geared to meet enhanced demand that will be relocated to India,” the company said. “The ceasing of the manufacturing operations will ensure the immediate reduction of losses in its operations in the US.” Strides Arcolab is the world’s fifth largest softgel capsule maker, with the only dedicated softgel facility for hormones. It now has 14 manufacturing plants spread across India, the US, Brazil, Mexico, Italy, Poland and Singapore.

– Our Bureau

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