Shreya Life Science, subsidiary of the Moscow-based Shreya group, has chalked out a Rs 100 crore (Rs 1 billion) investment plan for India.
On the cards are plans to set up a formulations manufacturing unit at Aurangabad in Maharashtra at an investment of Rs 30 crore (Rs 300 million), besides an investment of Rs 50 crore (Rs 500 million) in its biotech project in Pune.
The company will be spending close to Rs 20 crore (Rs 200 million) in setting up an exclusive research and development facility in the areas of chemistry and biotechnology.
Sujit Kumar Singh, chairman and managing director of the company, said: "As per our growth strategy, the new formulations unit will be catering to the export markets. Having identified a gap in our business portfolio, we have decided to foray into R&D. All our investment plans will be funded through internal accruals. We have no plans to go for an initial public offering at this juncture."
"We expect to achieve a turnover of Rs 500 crore (Rs 5 billion) in the domestic market by 2007. We have designed a four-pronged growth strategy which includes growth through acquisitions, in-licensing arrangements with partners, collaborative research and strategic partnerships," Singh added.
The company is also exploring the option of setting up another drug manufacturing facility at Baddi in Himachal Pradesh.
The move is in line with the tax benefits offered by the state government for setting up manufacturing facilities in the state.
The company currently has a fully integrated manufacturing unit at Aurangabad. Shreya group entered India through the acquisition of the Tata group company Rallis India's pharmaceuticals business in 2001.
Further, in 2003 the group acquired the domestic pharmaceutical business of Plethico Pharmaceuticals.
While Shreya Life Sciences' turnover in the financial year 2003-04 stood at around Rs 200 crore (Rs 2 billion), with an export push strategy in place, it is expected to touch Rs 350 crore by the end of financial year 2004-05.