Usha Sharma – Mumbai
The Rs 300-crore Delhi-based pharmaceutical company Nestor Pharmaceuticals is all set to grow organically in both domestic as well as international markets. The company’s plans to set up new manufacturing facilities in Rajasthan and Nigeria have now been crystallised.
The company had first revealed its plans for Nigeria to Express Pharma in May last year (see story, Nestor Pharma to open new facility in Nigeria)
According to Rahul Sehgal, President, Nestor Pharmaceuticals, a second facility in Nigeria, situated at ILE -IFE, near Obafemi Awolowo University, is to be commissioned in November 2013 with an investment of Rs 20-25 crore. The Rajasthan facility will follow a year later, with an investment of Rs 150 crore. Funds for both these additional manufacturing facilities will be raised internally as well as via term loans.
Sehgal said, “Last year we had commissioned our beta-lactum facility in Nigeria. And to continue with our expansion in the Nigerian market, we have acquired and additional 11.5 acres in Nigeria and plan to manufacture liquid, syrups, soft capsules and beta-lactum products from the new facility.”
Speaking about the India market, Sehgal mentioned that the company presently has three facilities: at Faridabad, Hyderabad and Goa, of which the 30-year-old Faridabad facility is WHO-compliant. The aim behind setting up a fourth site in Rajasthan is to consolidate their domestic business and to accomplish this, the company is in the process of acquiring land in Rajasthan. The new facility will be designed as per US FDA guidelines.
Sehgal also mentioned that they also have manufacturing facilities in the UK and Nigeria, taking the total number of manufacturing units to five.
The company has dedicated 5,000 square feet area for research and development (R&D) at its Goa facility. At the R&D centre, experts conduct research on NDDS, IVF, soft capsules and oncology segment. Sehgal said, “Today, in our R&D centre, we have approximately 100 products at development stage. We are keen to launch these products within a span of one year which will get reflected in our 2012-13 balance sheet. We strongly predict that this will help us boost our business more aggressively in both markets. Nestor has introduced nearly 100 new products from its existing therapeutic areas. With a strong product pipeline, the company will have over 200 products in its kitty.”
80 per cent of the company’s business comes from the international market and to accelerate its existing business further, the company is going through the registration process for another 11 countries. These included Libya, Yemen, GCC-UAE, and six additional countries in the African market and two in far East Asian countries.
Nestor acquired its UK facility after it acquired the Suffolk-based manufacturing unit of Schering Plough, US in 2005. After renaming the facility Nestor UK and revamping it to meet MHRA and other EC standards, the facility went on stream in July 2007. Spread over 140,000 square feet area the facility manufactures ointments and creams, tablets and beta lactum. With this facility, the company plans to tap markets in Europe, Japan and France in a bigger way.
The company has a global manpower of 1,000 people and after the second Nigeria facility becomes operational, this will expand to 1300-1400. The company plans to hire local people for its Nigeria facility. Only 12-15 employees will be from India who will be responsible for decision making process.
Sehgal added, “During the 2011-12 fiscal, we have managed to earn Rs 300 crore and from the current fiscal, we are targeting to earn ` 400 crore. This expected growth has been forecast based on the revenues from the 100 products which were launched in the past year.”
Talking about the company’s IPO plan, he said, “As of now we are not considering an IPO but we have plans to tap the capital market in almost three years’ time.