Shasun has also tied up with three US companies for full-time equivalents (FTEs) for three bulk drugs. The contracts are expected to be drawn shortly for these products and Shasun has initiated the process of getting Drug Master File approvals.

Speaking to The Financial Express, Shasun joint managing director S Abhaya Kumar said that the contracts will run for a minimum period of seven years which would make Shasun exclusive supplier for the particular drugs.

With Austin's help, Shasun has also embarked on manufacturing speciality chemicals (intermediates for final drugs) for which clinical trials are being undertaken by MNCs. These products could have contracts lasting for 20 years, Kumar said. The revenues from R&D are expected to go up to Rs 18 crore this year, to Rs 63 crore in 2001-2002 and Rs 100 crore in the following year. The conservative estimate of Shasun's turnover for 1999-2000 is around Rs 175 crore with a PAT of Rs 20 crore.

More contracts are expected through Austin which is expected to boost Shasun's turnover in the current year. According to Kumar, Austin was also well-satisfied with Shasun and is willing to terminate other similar partnerships here in India and overseas. Meanwhile, the R&D workgroups of Shasun is expected to increase to eight as Shasun plans to enter basic research in a couple of years.

The new arrangement with Austin will ensure that Shasun transfers the technology for which research was contracted to overseas companies which do not want the drugs manufactured from India. Where Shasun is also undertaking manufacture (as in the case of the three MNCs mentioned above), Austin will get a percentage of sales as commission.

Austin will also be bringing in some $10 million (by way of equity) and this would be used by Shasun to set up a formulations plant in India (for exports to Europe) and to acquire a plant in the US.