Magan Industries forays into biotech, pharma
By Our Corporate Bureau | 17 Jul 2002
Hyderabad: Magan Industries Ltd is expanding and diversifying its activities into the field of biotech and pharmaceutical formulations.
The company has acquired an industrial undertaking, equipped with modern manufacturing facilities for pharmaceutical products as per the regulations of the Current Good Manufacturing Practice and the World Health Organisation with constructed area of about 1 lakh square feet, centrally air-conditioned, situated near Ahmedabad and well connected by road and rail.
The unit has the capacity to manufacture 600 crore tablets, 30 crore capsules, 120 crore oral liquids, 100 crore injection vials powder ampoules and 100 crore injectable bottles every year. The annual turnover of the unit, with full utilisation of its installed capacity, is estimated at about Rs 800 crore.
In the herbal field the company proposes to take up the cultivation of safed musli, a herb used in medicines to remove all types of weakness in human beings. Magan Industries has identified the agricultural land, which it proposes to acquire, for the required cultivation.
The demand of this herbal product is estimated at 35,000 tonnes per year and is likely to further increase against which the present supply is very low. Apart from India, the other markets of this product are identified to be in South Africa, Middle East nations, Europe and the US. The project will generate a tax-free income for the company.
Magan Industries, engaged in the activities of developing software and being entitled to various tax benefits having its business at Silvassa in the union territory, has received a software order of $5 million. The company is in the process of receiving more such export orders, negotiations for which are in an advanced stage. The profit earned by the company enjoys tax exemption under various provisions of the Income Tax Act.
The shares of the company are listed on Bombay and Ahmedabad stock exchanges and are traded in the demat mode only. With a view of facilitating its shareholders, Magan Industries plans to list its shares on the National Stock Exchange in the near future.
