The new state-of-the-art plant will have a capacity to manufacture three crore units per annum. The projected outlay for the facility is Rs 20 crore and will be financed mainly via internal accruals while the balance will come from financial institutions. The project is likely to go on stream by April 2001.

A company press release said that the estimated production for the first year will be 1.5 crore units which will be increased to three crore units in a period of two to three years.

The new plant will be built to conform to the highest international standards and in line with the US FDA and UK MCA guidelines.

The company is already in the process of obtaining the approval from the US FDA and the UK MCA for the existing plant for tablets and small volume parenteral products.

This will enable the company to access the lucrative markets of USA, UK, Europe, the Russian federation and other CIS countries, besides Sri Lanka, Vietnam, Malaysia, Cambodia, Myanmar, African countries etc.

The company adds that with the commissioning of the project, the plant will contribute Rs 36 crore to the company's turnover, arrived at on a full capacity utilisation basis and barring unforeseen circumstances. The profits derived from this plant will be totally tax-free and is expected to improve the bottomline significantly.