Elder says new plant will boost sales 15%
The INR1.5bn (€23m) facility, which was unveiled last week, will make sterile injectables including antibiotics like cephalosporins which, according to company director Alok Saxena, “offer a good opportunity both for the domestic as well as export markets.”
The global market for injectables is growing at a rate of around 11 per cent a year and is predicted to reach a total value of $245bn with generics generating around $500m a year, according to figures quoted by the Economic Times.
These numbers clearly support Eldar's belief in the market's potential as does Pfizer deal with Strides last month in which the US major cited expansion into generic injectables as a key driver for the agreement.
Injectables aside, Elder's new facility will provide the firm with other benefits according to Saxena. He said the firm plans to centralise the production of syrup-based drugs in Dehradun in a move expected to provide significant cost advantages.
He added that: “We expect the new facility to add 15 per cent to our revenues,” which grew 28 per cent last year on significant gains made by key products like Shelcal, Chymoral Forte and Formic-O.
Tax exempt zone
Elder also believes that new facility’s location in one of India’s “excise benefit zones” where taxes are not levied pharmaceuticals that are shipped overseas will help its efforts to grow outside India.
The firm is the second Indian drugmaker to have highlighted the benefits of these zones in as many weeks, following hot on the heels of Sohm India which formed a partnership with a manufacturer based in Himachal Pradesh.
In related news, operations at Elder’s subsidiary in Bulgaria began today. The unit, which is one of three acquired in the country, will be responsible for the distribution of the firm’s drug products nation wide.
