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Shasun Chemicals and Drugs, the leading bulk drugs and contract manufacturing company, which acquired the pharmaceutical custom synthesis business of Rhodia Pharma in UK in January this year, would invest $30 to 35 million in the UK company over the next two years.
The new investment is to tap the research and production capabilities of the company and also take up its pipeline products to final stage as anticipated in the acquisition deal, said S Vimal Kumar, joint managing director, Shasun.
The Rhodia acquisition, which was completed last week, was done through Shasun's UK-based wholly-owned subsidiary Shasun Pharma Solutions. The deal was funded through internal accruals and debts.
The transaction includes all of Rhodia's development and custom manufacturing services catering to innovator and emerging pharmaceutical clients in US, Europe and Asia.
Rhodia posted euro60 million revenues in the year ended December 31, 2005 and employs 349 people.
The deal also includes acquisition of Rhodia's UK manufacturing sites at Dudley in Northumberland, England and Annan in Scotland and also the current management team Rhodia and the existing employees.
With the addition of Rhodia's business, exclusively into the contract research and manufacturing service (CRAMS) area, Shasun is expecting turnover to the tune of Rs 750 to 800 crore (Rs 7.5 to 8 billion) in the fiscal 2007 to 2008.
The company executives also said that it is open for few more acquisitions in Europe to enhance its presence in the CRAMS business. Shasun is also currently setting up another manufacturing facility at Visakhapatanam at an investment of about Rs 45 crore (Rs 450 million).
This facility would cater to the client-based API manufacturing business.
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