JB Chemicals plans to invest in Gujarat to set up a Pharma SEZ

Mumbai, Jan 17 (UNI) JB Chemicals&Pharmaceuticals (JB Chem) has signed a Memorandum of Understanding (MoU) with the Gujarat Government for the development and construction of a Pharmaceutical Sector Specific Special Economic Zone (SEZ) at Panoli.

The MoU was signed during the Vibrant Gujarat Summit held in Ahmedabad on January 12-13, 2007, a J B Chem statement to BSE said today.

The Company plans to set up the said SEZ as a Developer at Panoli in Gujarat dedicated to the manufacturing of pharmaceutical finished formulations, API's and their intermediates and service activities related to Research and Development and contract manufacturing with an estimated investment on infrastructure of about Rs 115 crore, it said adding that the SEZ construction will be completed during 2009.

The MoU was signed by Mr Kamlesh Udani, the Company executive director, in the presence of Gujarat Chief Minister Narendra Modi.

Commenting, Mr Udani said, ''We have a very close relationship and association with Gujarat for many years through, our social contributions and existence of JBCPL's several manufacturing units and we are looking forward to this unique SEZ being a tremendous benefit and boost to the economy of Gujarat''.

It has already identified the land for the SEZ which is located at GIDC, Panoli, Gujarat. The SEZ will be spread over an area of 130 hectares (325 acres). As per the SEZ guidelines, land will be allocated for processing and non-processing area. The processing will house 10-15 industrial units, both Indian and International companies from the pharmaceutical sector besides the company's own units for manufacturing various dosage forms for its growing exports markets.

The industrial units, with a total investment of over Rs 800 crore, will generate direct employment of about 6,000 people and indirect employment of over 15,000 people. The Company will set aside some area for selling up social world class infrastructure facilities in the non-processing area. It has already initiated talks with a few potential Indian and International entrepreneurs for its SEZ and is in the process of identifying and partnering with a real estate developer for setting-up SEZ.

Commenting on the decision to set-up the Pharma SEZ, Mr J B Mody, CMD of the Company, said, ''We are totally committed to the development of the Pharma industry in our country and particularly Gujarat. India is very much noticed in the international Pharma market and the SEZ will help us to be more competitive in the global pharma market''.

The benefits offered by the Gujarat Government to the proposed SEZ will give a further boost to the company's exports significantly. By taking this initiative as a Developer and Entrepreneur, the company will continue to enjoy the tax holiday on profits. Moreover, this will also help India and in particular the state of Gujarat to create world class infrastructure facilities and expand the company's share in the global Pharma market.

UNI