Company Watch

AVP to invest Rs 20 crore

Usha Sharma - Mumbai

Arya Vaidya Pharmacy (AVP) is expanding its presence in the domestic market with a total investment of Rs 20 crore. They have plans of setting up its new production cum packaging facility at its existing location in Coimbatore. The entire expansion is divided into two phases. The company will commence phase I of the project by September this year and phase II will be over by early 2009.

AVP has production facilities in Kerala at Kanjikode and Tennilapuram which manufacture around 420 therapeutic formulations. Meticulous care is taken at every stage of production to follow the traditional precepts and quality norms, under the supervision of trained ayurveda physicians. Under the expansion plan for phase I, it is setting up facility for filling and packing in the international standard. Whereas, for phase II company will install well equipped modern facilities in the manufacturing unit, which will reduce production cost, increase production quantity, while simultaneously increasing quality of the product. The company has received Good Manufacturing Practices (GMP) certification for production standards under the WHO guidelines for products manufactured at Tennilapuram.

Commenting on the expansion plans, A R Ramasubramania Raja, President - Finance, Arya Vaidya Pharmacy, said, "We are setting up new production-cum-packaging facility at our existing plant. For phase I expansion we have decided to spend Rs 10 crore and the remaining funds will be utilised for the second part of expansion. AVP has also selected the current location for maximum operating economy and effectiveness. We have decided this location because it is easy and regular supply of raw materials ie fresh herbs, efficient plant layout, good transport facility, communication facility with raw materials provider, and speed of services and labour is available in plenty."

At present it has 120 products for different therapeutic areas. Till now the company was outsourcing its production capabilities from other companies. But with the help of the new facility, the company will be able to conduct its entire activities under one roof. During 2007-08 it generated a total turnover of Rs 30 crore and for the current financial year the company is aiming to touch Rs 60 crore. "With the help of new facility we are 100 percent sure of doubling our existing production capability. Over here, we will be able to manufacture tablets and capsules", Raja added.

u.sharma@expressindia.com