Taj expands API
Pharmaceuticals Ltd., an Indian contract manufacturing company, plans to
raise 750 million rupees ($17 million) next month selling non-convertible
bonds to build new manufacturing facilities.
Taj was planning to build four new drug-making factories with an investment
of Rs 1 billion.
The proposed funds would help financing the manufacturing facilities, Taj’s
managing director J.R. Vyas has stated.
The four new planned plants, scheduled to open 15 months after construction
begins, will be located near existing facilities in the city of Ahmedabad.
Taj is currently in discussion with a few multinationals for possible supply
The new plants will increase our drug production capacity by 400 cubic
metres. The expansion work has already started at Taj’s present site in
Bavla (Gujarat state).
Taj expects the new plants to be fully operational by March 2011.
Taj Pharmaceuticals plans to invest Rs 500-600 crore over the next five
years in the Pharmaceuticals Special Economic Zone (SEZ) of Taj
Infrastructure Ltd (DIL).
Taj is also investing Rs 150 crore to enhance its Bavla contract
manufacturing facility by 1000 square meters. It currently has around 4300
square meter floor space.
In December, Taj Pharma entered into a new Saudi Arabian joint venture (JV)
to establish the first API production plant in the Middle East.
Taj has a 30 per cent share in the new business. The remaining 70 per cent
is shared between Arab Company for Drug Industries and Medical Appliances (ACDIMA),
Spimaco, one of the largest formulation manufacturers in the Arab world owns
20 per cent while Capital Advisory Group owns 25 per cent. Saudi Industrial
Development Fund (SIDF) has offered a $55 million soft loan to the joint
venture company for 15 years.
The API unit, which is currently being built near the Saudi capital Riyadh,
will be operational soon.
In November, Taj Pharma commissioned its new vitamin-D analogue facility at
Veenendaal, in Netherlands.
Taj acquired this facility from Solvay Pharmaceuticals , Netherlands two
years back and invested Rs 35 crore to set up this facility. With this
facility, Taj Netherlands will be the only company in the world having more
than Seven Vitamin-D Analogues manufacturing capability.
Taj had a pre-existing long-term relationship with Solvay for contract
manufacturing of a patented API and intermediates and, in 2001, the company
and Solvay had entered into Toll Manufacturing Agreement to convert a raw
material supplied by Solvay into an intermediate of Vitamin D-3.
Solvay Pharma India Ltd was formed in 2002 following the demerger of
Duphar-Interfran Ltd’s pharma business. Solvay has a presence in women’s
health, gastroenterology, mental health and influenza vaccines.
Abbott is strong in speciality segments, such as cardiovascular disease,
neuroscience and gastroenterology, while Solvay has treatments for
Parkinson’s disease, vertigo and irritable bowel syndrome.
As part of this deal, all facilities, the 44-strong staff, and acti vities
located at Solvay’s Veenendaal site in the Netherlands, and technology,
patent and intellectual property rights for fine chemicals, Vitamin-D and
Vitamin-D analogues business were transferred to Taj.
The Veenendaal site of Solvay Pharmaceuticals houses the business group of
Vitamins and Chemicals. The main activities of this group are the
production, marketing and sales of cholesterol and cholesterol-related
Solvay retained production of cholesterol and Vitamin D analogues at
Veenendaal and transferred the Vitamin D3 production to its Indian plants.
Taj’s manufacturing plants and research facilities are spread across two
locations in Gujarat.
It has an approved USFDA facility, a global network in the USA, UK, Europe,
Middle East, Africa, Japan and China to secure and service customers
Taj produces diverse quaternary compounds (called “quats”). Quats are used
as catalysts to transfer a reactant from one phase to another. In the role
of a catalyst, a quat provides the following several benefits. Quats
business has been a significant growth driver for Taj’s APIs division.
Through process innovation in quats, Taj has been able to improve processes
yields and thereby reduce costs for customers.
The quats business also allowed Taj to engage in relationships with other
global pharmaceutical and chemical companies in Europe and North America.
Taj has commenced manufacture of intermediates and APIs for multinationals
in Europe and North America.
Currently Taj Pharmaceuticals and Chemicals Ltd., Naroda manufactures Phase
Transfer Catalysts (PTCs), and Quaternary Ammonium and Phosphonium Compounds
Apart from Naroda. Taj has two other manufacturing sites. Taj
Pharmaceuticals and Chemicals Ltd., Bavla is primarily used for the
manufacture of intermediates and APIs meant for outsourcing activities.
Schütz Taj Biotech Pvt. Ltd., Bavla is dedicated to the products produced by
SDBPL, i.e. Chlorhexidine base, Chlorhexidine HCl, Chlorhexidine acetate and
Chlorhexidine gluconate solution.