Dishman eyes European buy

Dishman Pharmaceuticals & Chemicals plans to acquire a company in Europe with a war chest of around Rs 200 crore (Rs 2 billion).

The Ahmedabad-based company, which manufactures APIs (active pharmaceutical ingredients), is eyeing inorganic growth in Europe and is in talks with a company there.

"The acquisition, as and when it happens, will strengthen the company's position in the European markets," said a company official.

Also on the anvil is the setting up of a new plant in China and fresh investments for its Gujarat-based plants.

"We are looking at targets in Europe and the final decision may be taken in three to four months. We are scouting for companies that are less than Rs 200 crore in value," Chief Financial Officer V V S Murthy said.

The company has not appointed any merchant bankers for the proposed buy, preferring to hold direct talks.

Besides looking to grow through the inorganic route, the company has embarked on an expansion strategy by planning to set up four manufacturing plants at Bavla in Gujarat.

For this, the company will invest about Rs 150 crore (Rs 1.5 billion). One of the plants started this month, while two more will be commissioned before March 2008. The fourth will start in April-May.

Dishman is also setting up a manufacturing plant for drugs in Shanghai, China, with an investment of around Rs 40 crore (Rs 400 million) for which it plans to set up a new company.

Land for the proposed plant has already been acquired and is expected to be commissioned during the second quarter of the next financial year.