BANGALORE, Dec 15: The Rs 120-crore Micro group plans to set up two formulation drug facilities in Pondicherry shortly. According to Micro Laboratories Ltd vice-president (international business development) GD Saini the company is in the final stages of installing the facility at Tirubhuvanai Veli in Pondicherry.

The initial investment, which will be raised from financial institutions, is in the range of Rs 4-6 crore. The company has already entered into agreements with Canara Bank and State Bank of Mysore for the purpose, said Saini.

While the major unit with latest technologies will be occupied by Brown & Burk Pharmaceutical Ltd, a sister concern of Micro group, the flagship company Micro Laboratories will use the second one. The facility is likely to go on stream by March 31, 1998. "The main reason to move to Pondicherry is the tax holidays declared a year ago. The tax holidays will, however, be withdrawn by March next year," said Brown Burk Pharmaceutical Ltd finance manager V Nagaraj.

Apart from this, earlier the company had decided to spread its wings to outside Karnataka to curtail transport cost to a certain extent in moving the finished goods to all parts of the country. The group has two formulation drug units at Hosur in Tamil Nadu and Peenya in Karantaka. The Micro group is also contemplating a facility at Hospet near Tumkur in Karnataka, besides these proposed plants at Pondicherry. Sensing the foray into global marketing as an important step towards tremendous growth, the company is also eyeing the Chinese market. As part of its programmes, Micro Labs is scouting for joint ventures in China, said Saini. It will introduce three psychotropic drugs during the next fiscal and launch some advanced anti-bacterial drugs soon, said Saini.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.