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Granules-Omnichem Pvt Ltd, a joint venture of Granules India Ltd and Belgium-based Ajinomoto Omnichem, will set up its facility in Visakhapatnam with $20 million.
The facility will manufacture high-value active pharmaceutical ingredients (APIs) and intermediaries.
“The JV would provide a diversified contract manufacturing platform for existing and future customers,” Mr Krishna Prasad, Managing Director, Granules India Ltd, told newspersons here on Thursday.
The proposed plant would have a capacity of three lakh litres a year. “It will be ready by late 2012. Commercialisation may begin in 2015. We are expecting Rs 400 crore revenues in the first year of operations,” Mr Prasad said.
The global generics market had ‘huge' potential. “In next two years, the global market opportunity will be about $300 billion. There is a huge opportunity for contract manufacturing,” he said.
Mr Gwin Bompas, Managing Director, Ajinomoto, said the global generics market was very “promising”.
“The cost-benefit is enormous. The savings in the emerging markets are 30 per cent and 50 per cent in labour and capital costs respectively,” he said.
The Granules scrip increased 0.18 per cent on Bombay Stock Exchange on Thursday to end at Rs 83.10.
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