The Hindu Business Line : AVRA Lab to invest Rs 20 cr in new facilities

AVRA Laboratories will invest up to Rs 20 crore, as part of its diversification into production, creating two new facilities for the manufacture of specialty laboratory chemicals in Hyderabad and an Active Pharmaceutical Ingredients unit in Visakhapatnam.

The Hyderabad-based company, focused on contract and discovery driven research, has built up world-class facilities. It has now joined hands with Apex Enterprises also of Hyderabad to make laboratory chemicals and meet domestic lab-industry demands.

The joint venture company called `Avra Synthesis', would also build an efficient distribution mechanism to cater to the drug discovery and contract research activity in the country. The first products would be launched in October, 2006 said Dr A.V. Rama Rao, the Founder Chairman and Managing Director of AVRA Laboratories.

Dr Rao, a former Director of the Indian Institute of Chemical Technology (IICT), Hyderabad, said at present fine chemicals were either prepared in-house or imported at a premium, adding to the cost and time-cycles. The initial cost of the project is Rs 8 crore.

Soft Loan

The Department of Science and Technology (DST) is providing Rs 3 crore as soft loan for 10 years from the Pharma Fund - created with a corpus of Rs 150 crore. AVRA Laboratories has bought 2.5 acres of land from the Andhra Pradesh State Financial Corporation (APSFC), in the Nacharam Industrial Area for Rs 2 crore. The balance would be invested by AVRA, he told newspersons on Friday.

AVRA Laboratories, a closely held company is also exploring options of sourcing part funds from Venture Capital or offering equity. The company mainly focuses in chemical research & manufacturing services; development of select generic products and specialty laboratory chemicals.

Supply Agreement

Referring to the API unit in Visakhapatnam, Dr Rao said that about 20 acres of land was allotted to it in the upcoming Jawaharlal Nehru Pharma City at Parwada in the port city. A Rs 10 crore unit, specialising on cancer intermediaries would be set up by December 2007.

More Stories on : Research & Development | Pharmaceuticals | Andhra Pradesh

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