Lupin Chemicals' power foray comes even as the company plans to undertake contract research work for a multinational for "bio-conversion of certain molecules."

Lupin Chemicals chairman Desh Bandhu Gupta said the Rs 20-crore power project is being part-financed via internal accruals while Rs 13 crore has been tied up with institutions.

The project will entail the installation of 2DG sets of 2.5mw each under the operational assistance of the Kirloskar group. The current cost of power in Maharashtra is in the region of Rs 4.20 per unit while the new captive power unit will lower this rate to Rs 3 per unit.

Lupin Chemicals will consume the entire 5mw produced, even as the company may add another DG set of 2.5mw in the long run.

Declaring Lupin Chemicals' results here onTuesday, chairman Desh Bandhu Gupta said the key drivers to the company's growth are improved efficiencies due to technical innovations, reduced costs and increased productivity. Approximately 35 per cent to 40 per cent of Lupin Chemicals' rifampicin production is consumed by group flagship Lupin Labs while another 25 per cent to 30 per cent makes its way into the export market.

The company registered a 59.24 per cent spurt in net profits to Rs 10.93 crore in 1997-98, compared with Rs 6.87 crore in the previous year. Rifampicin sales rose to 187.763 mt from 154.234 mt last year. Total income increased to Rs 110.82 crore. Lupin Chemicals has also declared a dividend of 10 per cent, resulting in a payout of Rs 3.35 crore on a paid-up capital of Rs 33.55 crore. The company has re-entered the dividend paying list after a gap of three fiscals.

Lupin Chemicals' executive director Satish K Velanker also said that the company had, along with other producers, made a representation to the National PharmaceuticalPricing Authority (NPPA) to review the rifampicin pricing policy. The company is hopeful of earlier price levels of Rs 5,220 per kg being restored.

Fifty-five per cent of Lupin Chemicals' equity is held by the promoters, 15 per cent by Lupin Laboratories and the balance by the public.