Plethico's foray into Jammu to capitalise on Herbal growth

Mumbai, Mar 12 (UNI) Plethico Pharma Ltd planning to hit the Capital markets in the near future with a issue size of Rs 110 crore, has amongst various projects set it's eye on the Mother of all Herbal locations, Jammu, to invest Rs 30 crore.

In a plantside visit in Indore accompanied by Journalists Plethico Pharma's CMD Shashikant K Patel said ''the company's view matches with that of the Indian Government in making Jammu as the focus area from which they can derive multiple benefit.'' The company is in the process of acquiring an ailing formulation unit which has abundant land attached to it. Plethico intends to step up the capacity of this unit once it acquires post due diligence by its engineering team, Mr Patel added.

The unit will also in the adjacent land lay the foundation by way of organic farming, for the company to standardise the top ten herbs which is important amongst the various herbal formulations manufactured by it.

Amongst the other plans are Rs 25 crore to be invested in the upgradation of existing Kalaria unit, near Indore to comply with the United Kingdom Medicines and Healthcare Products Regulatory Authority (UKMHRA).

It also intends to intensify it's research base in the herbal sphere by way of setting up research and Development (R&D) unit in Manglia in Madhya Pradesh (MP) by earmarking Rs 13 crore for the project.

Next the company in terms of it's International outlook and stature wants to have a corporate house of it's own in the city for which the company has earmarked Rs 20 crore.

Also in order to grow in the Over the Counter (OTC) segment the company is eyeing acquisition in terms of Brand or a stake in a company having an OTC outlook has earmarked Rs 28 crore and lastly it has earmarked Rs 28 crore for working on capital requirements.

The total project size is Rs 144 crore of which Rs 110 crore will be by way of Intial Public offering (IPO) and the rest would be financed from Internal Accruals.

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