New Delhi, Apr 4: Jagsonpal Pharmaceuticals Ltd has lined up an investment of Rs 25 crore by March 2007 to set up a new facility in Uttaranchal and is currently finalising its funding plans for modernising its existing manufacturing facilities.
The company has already invested Rs 10.7 crore on its manufacturing facilities during the last five financial years which did not fulfil the production requirement, resulting in capacity constraints. The current investment of Rs 25 crore is looking to rectify that error.
Uttaranchal has a special tax regime which is being exploited by more and more companies which are setting up facilities in the state.
Apart from modernising its existing manufacturing facilities, the current investment by the pharma company would also help to initiate substantial savings through reduction in excise duty and direct tax payouts.
During the first six months of FY 2005-06, JPL has reported a strong 16.8 per cent growth on a year-on-year basis over last year, partly aided by deferment of sales from Q4 2004-05 due to industry-wide developments.
Backed by a strong revenue growth, the operating margin improved 210 basis points during the period over last year.
With low investments in R&D, the company has relatively limited contribution coming from its new products. JPL has some strong brands in its basket and its product concentration is high with its top 10 brands accounting for around 80 per cent of the total revenue.
The company recorded an operating income of Rs 132.9 crore for 2004-05, an annual growth of 9.6 per cent over last year.