The Hindu Business Line : Arch Pharma eyes Europe acquisition

Bilaspur(Haryana), Feb. 26 Contract bulk drug manufacturer Arch Pharmalabs is looking to acquire companies involved in production of active pharmaceutical ingredient (API) in Europe.

API is a key active ingredient in the formation of medicines.

Arch is eyeing companies with a turnover of around $100 million for a buy out.

Revenues target

Speaking to Business Line, Mr Ajit Kamath, Chairman and Managing Director, Arch Pharmalabs said, “Our aim is to increase our revenue from Rs 500 crore at present to Rs 1,000 crore by 2010. We are planning to grow through both organic and inorganic routes.

The company is on the look-out for an acquisition of a similar-sized company in Europe because that’s the region which is traditionally known to be the hub for APIs.”

Mr Kamath said that the company was aiming to become the number one manufacturer of APIs in the country and among the top five in the world.

Expanding operations

The company on Tuesday announced the opening of its expanded operations at its Gurgaon site.

Christened as “Project Paschim”, the project that has been built at a cost of over Rs 50 crores comprises four manufacturing plants, enhanced utilities and effluent treatment facilities. This is aimed at aggressively targeting the key western markets of the US and Europe for manufacturing APIs.

“At 100 per cent utilisation by 2009, the site is expected to contribute close to Rs 250 crores to the topline of Arch Pharmalabs Ltd. To achieve this target, Arch has embarked on an aggressive DMF filing programme. We plan to file a minimum of six DMF’s every calendar year,” Mr Kamath said.

More Stories on : Outlook | Overseas Investments | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page