Aurobindo Pharma to set up units near Los Angeles

By Our Staff Reporter

HYDERABAD, MAY 12. The Hyderabad based Aurobindo Pharma is in the process of setting up two units as joint venture projects near Los Angeles (U.S.), involving a combined investment of $12 million, according to Mr. P. V. Ramprasad Reddy, Managing Director.

Addressing a press conference here on Friday, he said an MoU had been signed with the common joint venture partner, and the two projects were expected to be commissioned in 24 to 30 months. Three acres had also been acquired.

Preferring not to reveal the name of the JV partner for now, he said the first unit for manufacture of cephalosporins would be a 50:50 JV, involving a total investment (by the two partners) of $7 million.

The second one, where Aurobindo will have a 70 per cent stake, would be for the non-cephalosporin area, and involves an investment of $5 million.

Mr. Reddy said the JV being set up in China, with the Chinese Government's participation, was delayed by three months because of some permissions. Another formulations unit being set up in Brazil, as also the Chinese project, would be taken up this year and completed by March 2001, he said.

The company was also working on taking up projects in European Union, but it was too preliminary to give details, he said.

The company has set up the APL Research Centre at Bachupally near Hyderabad as an highly advanced research centre involving an initial investment of Rs. 25 crores.

The centre has a facility of 80,000 sq. ft. covered area, and provides international standard research facilities for over 100 scientists. In the next two to three year, further investment of Rs. 35 crores is projected. In the next phase, bio-technology and natural product research were being planned, he said.

The centre is to be inaugurated on Saturday by the Andhra Pradesh Chief Minister, Mr. N. Chandrababu Naidu.

Initial focus of the centre would be on chemical research, analytical research, formulation development and information technology and regulatory affairs, he said.

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