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Sun Pharmaceuticals redeems preference capital of Rs 17 cr 

Kailash Rajwadkar  
Mumbai, Jan 7: Sun Pharmaceuticals Industries Ltd has redeemed its preference capital of Rs 17 crore, which accounts for one-third of the total preference capital of the company. Moreover, the company has also repaid Rs 7.5 crore loan of Gujarat Lyka Overseas Ltd which was formally merged with Sun Pharma, officials said.

The company also prepaid debentures to the extent of Rs 66 lakh for Tamil Nadu Dadha Pharma which too was merged with it.

The rest of the preference capital of Sun Pharma would be redeemed in two tranches in two years time, company officials said.

The company's interest income has been positive on account of surplus funds which been deployed in bank deposits, officials said. The company has not resorted to any market lending on its surplus funds, the official added.

The company is keeping its surplus funds to invest in research as also in the brand development of its products in the international market. The company's 49 per cent US subsidiary is awaiting approvals for nine ANDAs, and once cleared would be launched.

Officials said that the new product launches would invite investments by way of product registrations.

The company has also roped in AAC Consultancy group to implement good manufacturing practices at its joint venture in the US. The mandate to AAC is to implement all necessary systems and documentation procedures as instructed by USFDA, sources said.

Meanwhile, Sun Pharma is planning a major thrust to put its disease awareness programme on the fast track and rewrite its segment growth. The company had earlier, during the last one and half years, kicked-off two disease awareness campaigns which accounted for around Rs 1 crore.

It is also planning to use multimedia or non conventional tools to get its message out. However, company officials declined to comment on the funds earmarked for the campaign and media tools to be used.

On the recent revision by NPPA, officials clarified that there was no impact of it on the company. Sun Pharma has strong presence in specialty therapy areas like psychiatry, neurology and cardiology and has six brands among the country's largest selling pharma brands.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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