The Hindu Business Line : SGS to scale up India operations in 2-5 years

It plans to scale up its life sciences activities in the country to that of a CRO (clinical research organisation) in the coming 2-5 years, according to senior SGS officials who were here.

The Geneva-based global major, active in India since the 1950s, to start with, has upgraded its presence in Chennai and set up its first Asian testing and analytical facility for pharma and life sciences companies with an investment of $1.7 million.

The services, so far limited to inspection, testing and quality control, will extend to bioanalytical testing and bioequivalence studies and in the coming years offer contract research and clinical trials related services for domestic and MNC pharma companies, Mr Christian Jilch, SGS COO for Asia-Pacific, told Business Line.

Chennai, where it has been operating labs for the past two years, would be the hub of life sciences activities. SGS has taken up 16,000 sq. ft of space at the TICEL Bio Park for the new facility that is opening later this month.

Mr Jilch and the SGS India Managing Director, Mr Claude Lanouhe, were in Bangalore on Thursday for the opening of their latest laboratory for consumer products. The 100-member, $1-million facility is mainly geared to the textile industry.

Mr Jilch said India was one of the fastest growing markets for SGS, particularly pharmaceuticals, biotechnology and textiles. It was expected to throw up good opportunities for CROs even as MNCs and domestic companies were gearing up with their new drugs and product portfolios. With the facility going in for a US FDA certification, it could speed up the approval process for pharma companies entering the US market.

Mr Jilch said SGS would be putting in another $2.1 million for setting up the CRO in due course in the Chennai facility. "We are committed to investing another $4.5 million in five years" to consolidate this business as it unfolded in the country, he said.

SGS India, which has its headquarters in Mumbai, has already been offering quality control in production, from raw material testing to post-market surveys for bulk medicine procurers through its Chennai facility for the past two years. It has pharma manufacturers, hospitals, and the TN Medical Services Corporation among its clients.

Without mentioning country revenues, he said: "Our target for the next year is to grow 50 per cent by volume of business." Almost half of the Indian business comes from consumer products, led by the textiles sector. The company has 40 offices across the country and operates in oil and petrochemicals, agriculture, mineral sectors among others.

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