The Hindu Business Line : Dishman Pharma lays foundation stone for SEZs

Ahmedabad, Dec. 23 Dishman Pharmaceuticals & Chemicals Ltd will generate direct employment for 25,000 people in pharma and engineering Special Economic Zones coming up in Bavla Taluka, 45 km fromAhmedabad, said Mr Janmejay Vyas, Managing Director.

He was speaking at the foundation-laying ceremony of the SEZs by the Gujarat Chief Minister, Mr Narendra Modi. A total investment of Rs 25,000 crore will be undertaken in two phases of which Dishman’s units will come up at Rs 750 crore on two lakh sq mt in the pharma SEZ.

The money will be raised partly by funding and partly by PE, said Mr Vyas.

“We will invest 40 per cent in the first phase and complete the SEZ development in one and a half years time. We are looking at external borrowing to raise the money and will dilute equity in the Swiss firm in the year 2010, through an IPO. For working capital, we have a consortium of four banks,” he said.

The two SEZs will be of 300 acres each. The company has signed 16 MoUs for pharma and eight MoUs for engineering, he said.

The company is in talks with German company Bosch who have shown interest in the SEZ, he added.

A manufacturing facility for cancer and other high potency drugs will be built at Bavla and it will be commissioned by Swiss Carbogen Amcis AG (CA), Dishman’s wholly owned subsidiary.

An investment of Rs 50 crore will be made in the facility, he said.

Dishman has plans of manufacturing and marketing disinfectants and sanitisation products under the label of Lab Sept.

“The OTC products will be for India, Australia and Saudi Arabia and will be ready for sale in January. While in India and Australia the company and its subsidiary will undertake the manufacturing and marketing functions, in Saudi, a joint venture, Dishman Arabia Ltd will be formed with a Saudi partner.”

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