MUMBAI, May 6: Lupin Chemicals, part of the Rs 1,000 crore Lupin group, has received the US FDA approval for its 120 million tonne rifampicin facility at Tarapur in Maharashtra. According to the company, the facility is the second in the world to receive the approval after German multinational Hoechst Marion Roussel's plant in Italy.

Lupin Chemicals executive director Satish Velankar said that the FDA approval would allow the company penetrate the high value US market and target formulators who are getting into the anti-TB segment. Rifampicin prices in the US market are about $400 per kg.

In India, supplies to group company Lupin Laboratories account for about 60 per cent of production though other buyers include Glaxo, Ipca, Hoechst, Hind Ciba and Ranbaxy.

Lupin Chemicals exports its product to Asian and European markets and the company's strategy is to be a cost leader in rifampicin. The company also plans to set up its own 5 MW captive power plant to increase competitiveness. The project will entail an investment of Rs 12 crore.

The company registered a turnover of Rs 44 crore and a net profit of Rs 5.03 crore for the six months ended January 31, 1997.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.