Unichem Laboratories is planning to set up a subsidiary in the US. The company's board will meet on January 30 to consider the proposal and would also consider an issue of bonus equity shares besides the sub-division of nominal value of equity shares of the company.
The company's last bonus issue, in 2000, was in the ratio of 1:1 shares and sources said that it is likely to be the same this year. Senior executives at Unichem, however refused to divulge details on the issue.
The company has been eying the US generic market either through acquisition or joint venture route. The drug maker has embarked on a strategy to enter regulated and semi-regulated markets with focus on CIS, SAARC, South East Asia, Middle East, South Africa and Eastern Europe. It has a presence in Europe through its joint venture agreement with Niche Generics.
Unichem's business model essentially revolves around entering into alliances with leading multi-nationals for product development and licensing arrangements. The company exports to around 20 countries and has obtained over 250 registrations with another 200 in the pipeline to be realised over 18 months.
Meanwhile, the company has identified Baddi in Himachal Pradesh to set up a greenfield formulation unit at an investment of around Rs 30 crore (Rs 300 million). It already has a formulation unit for Betalactum range at the same location.
A 100 per cent excise duty exemption offered by the Himachal Pradesh government for a period of 10 years from the date of commencement of commercial production has attracted the company to set up the proposed project.
The new unit will also enjoy 100 per cent income tax exemption for a period of first five years and 30 per cent for another five years on the net profit generated by the unit.
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