India's JOL optimistic about Belgian pharma purchases

15 June 2004 03:22  [Source: ICIS news]

SINGAPORE (CNI)--India's Jubilant Organosys Ltd (JOL) expects its recent acquisition of Belgium's Pharmaceutical Services Inc (PSI) and PSI Supply to generate additional sales of up to Euro13.44m ($16.39m) by the end of this financial year to 31 March 2006.

The Belgian companies were JOL’s first acquisitions overseas. A JOL source told CNI's sister publication Asian Chemical News (ACN) that the acquisitions would provide the company with synergies at customer and production levels. He declined to say how much JOL had paid for the two companies.

The source said although Jubilant was interested in more acquisitions, it was not planning to buy any more companies in the current financial year.

He added that, as the company did not have enough internal accruals to fund its next acquisition, the board of directors had decided to raise the funds through one or all of the following means - global deposit receipts, convertible bonds, and foreign equity.

Meanwhile, the source said Jubilant would be spending about $40m on expansions this year. It would double the capacity of its custom research and manufacturing services (Crams) plant to 300 kl/year and increase the capacity of its active pharmaceutical ingredients (API) manufacturing plant by 60% to 225 kl/year from 150 kl/year.

The source said there were plans to expand the capacity of the API plant by another 80% after this financial year to meet increasing demand. He said by 2007 the plant would be capable of producing up to 405 kl/year. The expansion would cost about $55m.

By: Alfred Tong
+65 6780 4359

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