Unichem Laboratories is planning to expand its R&D activities and operations in US market. In order to attain, they have lined up a CapEx of around ₹350 crore for the next two years. The company which mainly focuses on various therapeutic segments is expecting to cross USD 100 million revenue in the US in the next few years. While planning to generate USD 500 million revenue for the long term.
To justify the above chief finance officer of the company, Rakesh Parikh said: “One major CapEx is the API expansion, which is going on, the new plant which is coming up as well as on the formulation side and existing API site”. He also acclaimed that company is investing in its R&D department to file for more complex products in the US. Consequently, he said, “If you add all these projects which are in the pipeline, the total expenditure can be almost about Rs 300 to Rs 350 crore, which could be spread out over two years”.
He added “Since we are planning to increase our filings and work on more complex products, we are open to invest more. It can hover anywhere between 5 per cent to 7 per cent (of total sales on R&D) depending on the various projects which have started”.
The company is planning to launch three or four new products in this fiscal year Parikh said. While commenting on India’s major tax reform GST, he said: “There won’t be a major impact on overall volume and the values for the year as a whole”.