The Hindu Business Line : Cadila looking at fresh jt ventures in Europe, Gulf

Ahmedabad, Oct. 1 The Gujarat-based pharmaceutical major Cadila Pharmaceuticals Ltd, which announced the opening of its manufacturing plant in Ethiopia today, is looking for more joint ventures in Europe and the Gulf countries and explore possibilities of mergers and acquisitions as well as part of its growth strategy for the future.

One of the largest privately-held pharmaceutical companies in India, Cadila Pharma is also planning to increase its present export volume from 30 per cent (around Rs 200 crore) to 50 per cent in the next three years, its Chairman, Mr Indravadan A. Modi, told presspersons here.

The company is investing Rs 125 crore for infrastructure development in its Special Economic Zone (SEZ), being developed with a proposed investment of Rs 1,800 crore at Haripura in Ahmedabad district. These investments are part of its overall strategy to invest Rs 2,500 crore in the next five years.

Asked whether the rupee appreciation against the dollar would affect Cadila’s exports targets, he replied in the negative. The company is now focusing on the African and Asian markets, he added.

new plant

Announcing the formal opening of its new manufacturing plant, under the aegis of Cadila Pharmaceuticals (Ethiopia) PLC, a joint venture with Almeta Impex PLC, Ethiopia, Mr Modi said it was set up with an investment of $10 million.

“Within two years, we expect it to generate around Rs 100 crore per annum with an all-finished formulation business.”

Cadila Pharma is also making efforts to emerge amongst the top five pharmaceutical companies in the African continent in the near future.

The Ethiopian Minister of Trade and Industry, Mr Ato Girma Birru, and the Indian Ambassador, Mr Jagjit Singh, were among those present at the inaugural ceremony. The facility would start full-fledged production on October 16, company officials told Business Line.

The manufacturing facility is approved by the Drug Administration and Control Authority (DACA) of Ethiopia and conforms to manufacturing practice standards. Located at Akaki, near Addis Ababa, the plant has three dosage forms viz. tablet, capsules and liquids. It has the capacity to manufacture 390 million tablets, 165 million capsules and 1.44 million litre bottles in one shift, aiming to focus on therapeutic areas such as cardiovascular, anti-diabetes, gastroenterology (antacids anti-ulcerative) etc.

Currently, the total pharma market of Ethiopia is approximately $200 million and is growing at the rate of 10 per cent per annum. The company plans to be the numero uno in the next three years with a turnover of $15 million in the first year of its operation, Mr Modi, said.

The 56-year-old Cadila Pharma has a presence in 87 countries. An integrated healthcare solutions provider with pharmaceutical product basket, it caters to over 45 therapeutic areas. The company has three plants in India. Besides its Dholka-based flagship facility in Ahmedabad district, it has two API units at Ankleshwar in Bharuch district and another at Samba, near Jammu, which started commercial operations in August 2006.

Its partner, Almeta Impex (Ethiopia), has been functioning as the importer and distributor of Cadila Pharmaceuticals products in Ethiopia.

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