Sun Pharam's Research division de-merged

Chennai, Sept 25: Sun Pharam, India's leading speciality pharmaceuticals company has announced that the de-merger of the company's innovating Research division would take place within couple of months.

Addressing a press conference here, Company's Chairman and Managing Director Dilip Shanghvi, however, ruled out any joint venture partner or private equity investor in the company.

Mr Shanghvi said the objective behind the de-merger was to recognise the different nature of products and research business.

The de-merger would give an opportunity to investors to value the two business entities differently.

On future plans, he said the company proposed to expand its international business, including the US-based Carco to 50 per cent of sales and increase the market share, in the next two to three years to four per cent.

The company has set a target of 18 to 20 per cent for the sales growth and increase the scientific manpower from 500 to 700 in the Research and Development wing in the next two years. The increase in manpower would be effected in projects on Generic products, NCE and NDDS products, including pre-clinical and support groups like Analytical.

The company also proposed to set-up a plant in Sikkim for production of tablets and capsules to cater to the domestic market.

The capacity of the proposed plant would be 300 crore units a year.

The first phase of the project would be commenced in March next year and the second phase in 2009, he added.

UNI