DRL plans to sell Pondicherry plant

DRL plans to sell Pondicherry plant

By SiliconIndia   |   Monday, 28 July 2003, 07:00 Hrs
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HYDERABAD: Dr Reddy's Laboratories (DRL), one of the leading pharmaceutical companies, is planning to sell off its formulations unit located in Pondicherry. The unit came into DRL's fold as part of its acquisition of American Remedies, another pharma company, in 2001.

A leading newspaper report said that the Pondicherry unit was used for making a variety of formulations depending on the need of the company. "The facility does not meet our production requirements and the investments needed to upgrade the unit will make the plan economically unviable," company officials told The Times of India.

However, the proposal is being put before the shareholders for approval during the annual general meeting of the company to be held on August 25, 2003, officials said. The valuation of the plant and the cost of the disposal are yet to be decided. All the financial exercise will be only after the AGM, they said. DRL has six bulk units and seven formulations units.

Of the formulations units, five are in India and two in UK. Of all its formulations units, one unit is exclusively meant for regulated markets. Meanwhile, the company is in the process of setting up another formulations unit in Goa. Confirming the plan, the officials said that the proposal was still at an early stage. The details of the plant are still being worked out.

However, according to sources, the company is looking at Goa since it offers fiscal benefits in addition to well developed infrastructure and locational advantage.

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