Lupin plans Rs 3000-mn capacity expansion

Mumbai: With an acquisition, capacity expansion and a foray in biologicals on the radar, Lupin Ltd is set to embark on a Rs 300-crore expansion plan.

The funds would be raised internally, Lupin’s Managing Director, Dr Kamal Sharma, said, though the company may consider borrowing when it plans an acquisition, he added.

The capacity expansion includes an export-oriented facility in Indore, and a plant in Pune for biologicals, a recent business interest for the company. There are about 20 scientists working on biologicals at the company’s research centre in Pune, he said.

On the acquisition front, Lupin would look at geographies where inorganic growth would cut time and expense as compared to a greenfield project, he said. The company is also on the look out for technology or new therapy areas, he said.

About 55 per cent of Lupin’s revenues come from its international operations. For quarter ended March 31, 2008, the company posted a net profit of Rs 95.87 crore (Rs 141.14 crore), down 32 per cent. Total income increased from Rs 665.63 crore for the quarter ended March 31, 2007 to Rs 783.17 crore for the quarter ended March 31, 2008.

Lupin’s consolidated net profit for the year ended March 31, 2008, stood at Rs 408.25 crore (Rs 308.56 crore) for the year ended March 31, 2008, up 32 per cent. Total income increased from Rs 2,212.76 crore for the year ended March 31, 2007 to Rs 2,912.82 crore for the year ended March 31, 2008.

Dr Sharma pointed out that the bottomline in the corresponding quarter last year was buoyed by a one-time intellectual property-related payment.

The company has posted a net profit of Rs 76.64 crore for the fourth quarter ended March 31, 2008, down 44 per cent from the net profit of Rs 137.08 crore clocked in the corresponding period of the previous year. Total income decreased from Rs 646.40 crore for the quarter ended March 31, 2007 to Rs 645.24 crore in the period under review.

For the year ended March 31, 2008, Lupin posted a net profit of Rs 443.38 crore, up 46 per cent when compared with the net profit of Rs 302.06 crore clocked in the corresponding period last year. Total income has increased from Rs 2157.58 crore for the year ended March 31, 2007 to Rs 2741.11 crore for the year ended March 31, 2008.