Niche to achieve break even in 2006-07

New Delhi, Apr 4 (UNI) Niche Generic, the European subsidiary of Unichem Laboratories Ltd (ULL), is expected to achieve break even during the new financial year.

The financials of Niche were significantly enhanced by one time operating inflows earned by the company.

Currently, only a small proportion of Niche's revenue is based on products sourced from ULL's facilities in India. However, in the long term, ULL plans to meet most of Niche's requirements, thus leveraging its low cost production facilities.

ULL's investment in R&D went up to Rs 15.3 crore during 2004-05, which remains modest by industry standards.

''The company is expected to scale up its R&D expenditure substantially in the coming years,'' according to credit rating agency ICRA.

Over the next two to three years, ULL is expected to invest significantly in capacity addition and in its overseas subsidiaries so as to widen its market access.

These invesments would be funded through a mix of borrowing and internal accruals.

ULL acquired 60 per cent of equity stake in Niche Generics of UK in 2002.

UNI MP SR BD1211