Company Watch

Flamingo to double capacity

Our news Bureau - Mumbai

Flamingo Pharmaceuticals has announced its plans to double its capacity at an investment of Rs 100 crore to establish its strong presence in the domestic market and leveraging the export opportunity in the contract manufacturing business. The expansion plan is aimed towards achieving a turnover of Rs 500 crore in the next five years. Flamingo's expansion will be aimed at increasing the capacities of the existing product range and the company also plans to enter into diabetic and cardio therapeutic areas. Flamingo plans to increase its production capacity to six billion units per annum from the existing 3 billion units per annum.

Flamingo has also launched across India a comprehensive range of innovative and quality formulations covering anti-infectives, gastroenterologicals and orthocare. It has also established its presence in North India, South India, and West India, and recently, in the Maharashtra market. Flamingo is also looking to complete their pan India presence by introducing their product range in East India by early October. Flamingo's target for the domestic market in India is to reach approximately Rs 300 crore by 2011 and to be in the list of the "Top 50" Indian Pharma companies. Pharma exports from India are expected to surge ahead with a projected 30 percent growth in the coming years & Flamingo's export division plans to reach around Rs 200 crore by 2011.

"Over the past 20 years, Flamingo has built a reputation for quality products in the global markets. We have been successfully operating in global markets and now with the foray in India's domestic market, we feel the strong need to expand our capacities to match up with the demand pull, which is constantly going up as India fast emerges as the pharmacy to the world," said Ashwin Thacker, Managing Director, Flamingo. Giving further details of the expansion plans Thacker added, "Flamingo expects an increase in the company's liquid dosage form business in Africa with a 50 percent unit-wise increase in sales of few good brands—"red iron", "b-ferric" on a year on year basis. The company has also received registration of other liquid preparations in South East Asia. Flamingo's current year export order book is strong and has achieved about 40 percent growth compared to same time previous year. With the increased capacity, Flamingo aims to cater to the increased demand from its existing contract manufacturing customers in the UK and European markets."