The Hindu : Business : Grandix to invest in expansion and R&D

Online edition of India's National Newspaper
Thursday, Mar 16, 2006

Business

Business

Grandix to invest in expansion and R&D

Corporate Reporter

30 p.c. equity placed with venture funds

To tap U.S. African and Southeast Asian markets Aims to reach Rs. 100 crore turnover in 2006-07

CHENNAI: Grandix Pharmaceuticals, engaged in manufacturing and marketing of anti-diabetic, anti-hypertension pain killers and neutraceutical categories, will be expanding its marketing network by investing Rs. 7 crore. It will also invest Rs. 2 crore in research and development in the initial phase.

Addressing presspersons here on Wednesday, Dr. A. Ramamurthy, Managing Director, said the company has a presence in seven states and will expand its network across the country to reach new markets by increasing its field force to 600 from 200.

To part finance the expansion and R&D activities, the company has already diluted 30 per cent of its equity by placing nine lakh shares of Rs. 10 each at a premium of Rs. 90 with two U.S. venture capital funds, namely, Xenox and Agnus. The expansion activities will increase the turnover to Rs. 100 crore in 2006-07, Dr. Ramamurthy said. The turnover was Rs. 26 crore in 2004-05 and the company expects to close the current financial year with a turnover of Rs. 36 crore.

To launch OTC products

According to S. A. Manikandan, Executive Director, the company manufactures and markets over 125 products and ranks 105th among 24,000 pharmaceutical companies in the organised sector in India.

The company is planning to launch five new products in the OTC category in a phased manner.

It will submit its first ANDA (abbreviated new drug applications) product this month and five ANDA products next financial year.

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