India-based Surya Pharmaceuticals is planning to raise Rs 500 crore ($100m) to fund construction of an active pharmaceutical ingredient (API) production plant, according to local media reports.
The money will be raised over the coming months through a number of channels and used to funds Surya’s investment plans. Having expanded into the pharmaceutical retail business the company is now looking to bolster its API supply and formulation operations.
Investment will be made in a new API plant near Chandigarh in northern India. A timeline for construction of the plant is yet to be released but Surya told the Business Standard of India that when operational it will produce APIs for a range of therapeutic areas, including cardiovascular.
Construction of the plant will help support growth at Surya. For the year ending March 31 2010 net sales were Rs 113020 lakh ($241m), up from Rs 72292 in 2009. This helped operating profit to increase from Rs 2529 lakh in 2009 to Rs 3805 lakh in the most recent full year financials.
Investments to drive growth in this fiscal year are already in place. Surya is nearing completion of an Rs 320 crore facility in Samba in northern India. The site will produce APIs and formulations and is expected to be partly operational next month, with full production beginning in December.
As well as supplying APIs Surya also operates a contract research and manufacturing services (CRAMS) unit in Punjab, India. The unit has received “serious enquiries” from the US, Surya told the Business Standard.
By making these investments Surya believes it can achieve over 40 per cent year-on-year organic growth. The company is also looking to grow inorganically through overseas acquisitions and told the Business Standard it is in discussions with targets in North America.
Surya was unavailable for comment at the time of publication.