— Granules OmniChem will operate its facility in the Pharmacity SEZ zone in Vishakhapatnam (Vizag), Andhra Pradesh.
Hyderabad, A.P, India, July 15, 2011 /India PRwire/ — Granules India Limited, a vertically integrated pharmaceutical manufacturer and Ajinomoto OmniChem, a leading producer of fine chemicals for the pharmaceutical industry, announced a joint-venture to offer high value active pharmaceutical ingredients (APIs) and intermediates to pharmaceutical companies. The new Company, Granules-OmniChem Private Limited, will provide value through a unique contract manufacturing platform that will benefit through Granules’ technological capabilities which offer high quality products through efficient processes and OmniChem’s extensive product portfolio and existing customers. The joint-venture will be equally owned by both companies.
Granules OmniChem will operate its facility in the Pharmacity SEZ zone in Vishakhapatnam (Vizag), Andhra Pradesh. The construction of the facility will commence by November 2011 and is expected to be completed by late 2012. The facility, which will have CAPEX of over $20 million, is expected to start production by January 2013. The Company will initially focus on high-value, low-volume APIs and intermediates for existing customers and will custom manufacture new chemical entities in the future.
The pharmaceutical industry is increasingly focusing on the $234 billion generics market, in particular, API production where more than 80% is for the generics market. Additionally, an increasing number of pharmaceutical companies are looking at outsourcing their various manufacturing needs. The JV is uniquely qualified to address the outsourcing needs in the market because it combines two companies that are known for their high quality products, extensive technological expertise and deep relationships with leading pharmaceutical companies.
“We are excited to enter the contract manufacturing sector through a partnership with OmniChem, which is a highly reputed company with an established track record in the sector. The partnership will allow Granules, from day one, to focus on leveraging our core competency, which is offering high quality products and exemplary customer support with industry leading efficiency. Our shareholders will benefit since this will enable Granules to diversify its business by offering high value APIs and intermediates which will increase our profitability. In addition, Granules will have an opportunity to manufacture formulations for the JV APIs” said Krishna Prasad, Managing Director of Granules.
“This joint venture is a major step in the future of OmniChem. We recognize the challenges our Customers are facing every day. We embrace their strategic and long term commitments to the community to offer access to quality medicine at an affordable price for the market,” explains Gwin Bompas, Managing Director, Ajinomoto OmniChem. “Our long term standing Customer relationships recognized through long term partnerships, combined with Granules’ expertise in high quality manufacturing and formulation in India will bring OmniChem to the next step in servicing our existing Customers, and attract new Customers. The JV will allow us to offer our Customers fully integrated lifecycle management of their products, whilst never compromising on our quality and service levels.”