Eurolife draws up ₹500-crore capex plan

Firm to tap regulated markets of Europe, U.S.

Eurolife Healthcare, a leading player in the production and distribution of intravenous infusions and other pharmaceutical products, plans to invest ₹500 crore over five years in India and Europe to expand capacity and tap Europe and the U.S. in ‘a big way’, a senior executive said.

While ₹100 crore will be invested in capacity expansion at the company’s four units in India this year, about ₹400 crore will be invested in Europe to acquire more companies there and expand its unit in Hungary, which was acquired by Eurolife last year.“We are already a significant player in India but we wanted to have a big presence in the regulated markets which areis Europe and U.S.. Over the next five years, we will invest €Euro 50 million in Europe,” said Sandeep Toshniwal, CEO and director, Eurolife Healthcare Pvt. Ltd., in an interview.

“Our plan basically is to target all the markets in Europe and the U.S. from our existing unit at Hungary which has a huge approved plant. We will be investing more in manufacturing there and to buy other companies. It could be a combination of both,” he added.

For the Indian operations, the ₹100 crore investment will be done this year and the company has already signed agreements to procure high-end machinery which will be installed at the company’s four units.This will double monthly capacity to about four million bottles.

The company will fund this expansion through internal accruals and equity dilution by the promoters.

“We are looking at the possibility of private equity investment further to fund the expansion,” he said.

In 2016, OrbiMed Advisors LLC, a healthcare-focused pharmaceuticals fund, invested in the company and currently holds 29% stake.

So far, the company has invested ₹300 crore to set up its two manufacturing units at Roorkee in Uttarkhand, acquiring two units of Baxter at Aurangabad and Chennai in 2017 and acquiring Teva’s infusion business in Europe with its production facility at Hungary in 2019, he said.

The company’s turnover, which was ₹250 crore in FY19, is expected to grow fourfold in five5 years after the expansion, Mr. Toshniwal said.

“Over the next five years, based on our investment in Europe and in India, we targeting close to ₹1,000 crore in revenue,” he added.

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Printable version | Mar 30, 2020 10:20:33 PM |

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