Business Daily from THE HINDU group of publications
Thursday, Jun 14, 2007
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Business Daily from THE HINDU group of publications Thursday, Jun 14, 2007 ePaper |
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Corporate
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Research & Development Aurobindo Pharma setting up R&D arm Our Bureau
Hyderabad June 13 The city-based Aurobindo Pharma Ltd is setting up a wholly owned subsidiary for collaborative research here and is planning to hire over 2,000 scientists by 2008. The company is also targeting to cross $1-billion mark in revenue over next two to three years and is scouting for acquisitions in Europe. "We have crossed $500 million in 2006-07 and are targeting to cross the $1-billion mark by leveraging on our growth engines and focusing on Europe. "We are looking to acquire smaller entities in Europe which can serve as launch pads for our growth." Mr P.V. Ram Prasad Reddy, Chairman, Aurobindo Pharma Ltd, told newspersons here on Wednesday. The firm is currently in talks with a small domestic firm for acquisition, he said, refusing to give further details. The modalities were being worked out for setting up a subsidiary for collaborative R&D, which would be functional in 2008 with over 2,000 research professionals. According to Mr Sivakumaran, Director (Research), it would focus on basic R&D and contract research. Aurobindo currently employs over 6,000, including 700 scientists.
New plants, investment
"In addition, we are investing over $15 million in our New Jersey plant which was acquired from Sandoz for $22 million. In the Special Economic Zone (SEZ) being developed near Hyderabad, our biggest formulations plant would come up with $50 million," Mr Reddy said. The firm is also setting up an active pharmaceutical ingredients (APIs) plant in the Pharma City in Visakhapatnam. While the New Jersey plant would start production in September, API plant and R&D subsidiary would be operational in 2008.
Stake sale ruled out
Asked about the idea of selling stake in the company, Mr Reddy said, "For at least five more years, we are not interested in stake sale. The work we have done for the last two decades is bearing fruits now and we are in a take off stage. "There is no question of selling stake or even mobilising funds through the foreign currency convertible bonds (FCCBs) for now." To mark its new growth target and vision, Mr Reddy earlier launched a new corporate logo for the company. The non-Executive Director, Mr Lanka Srinivas, and others were also present.
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