Neuland Laboratories Share price

Neuland Laboratories Limited engaged in the manufacture ofbulk drugs has been incorporated in 1984 as a privatelimited company. The Company has been promoted by Dr. D.R.Rao Ph D. in Organic Chemistry from the Universityof Notre Dame USA. The company commenced operations inJune 1986 at its plant at Bonthapally Village MedakDistrict Andhra Pradesh with a capacity to manufacture 1.2tonnes per annum (tpa) of Salbutamol sulphate an antiasthmatic drug and its intermediates such as salbutamolbase and bencyl salbutamol.In 1990 the Company expanded its installed capacity forsalbutamol sulphate and its intermediates to 9 tpa. In1993 the Company completed a project for the manufactureof 2.4 tpa of terbutaline sulphate (Terbutaline) an antiasthmatic drug 3.6 tpa of labetalol hydrochloride(Labetalol) an anti hypertension drug and for furtherexpanding the capacity of salbutamol sulphate to 18 tpa.The Company commenced manufacturing ciprofloxacin byutilising part of the additional facilities created forsalbutamol sulphate. The total project cost of Rs.346 lacswas financed by a rupee term loan of Rs.260 lacs from ICICIand cash accruals of Rs. 86 lacs.In 1994 the Company completed a project for furtherdiversifying its bulk drug manufacture and set up a newplant at I.D.A. Pashamylaram Medak district AndhraPradesh for the manufacture of 1.5 tpa of enalapril maleate(Enalapril) a cardio-vascular drug 60 tpa of ranitidinehydrochloride (Ranitidine) an anti-ulcer drug and 66 tpaof Quinolones (such as Ciprofloxacin NorfloxacinOfloxacin and Pefloxacin) a new generation ofanti-bacterial drugs. The project cost of Rs.1570 lacs wasfinanced by rupee term loans of Rs. 600 lacs (ICICI - 400SCICI - 200) equity issue of Rs. 870 lacs state subsidyof Rs. 15 lacs and cash accruals of Rs. 85 lacs. Thecommercial production commenced in October 1994. Out of theequity of Rs. 870 lacs Rs 570 lacs was offered to thepublic (at a premium of Rs 35/- per share). The issue wasoversubscribed 70 times and the shares are listed on theHyderabad and Bombay Stock Exchanges.The Company has been granted quality system certificationas per ISO 9002-9004 for its Plant at Bonthapally Villagefor the manufacture and supply of bulk drugs andintermediates.The Company has well equipped Research & Developmentfacilities at Bonthapally which has been recognised by theGovernment of India. The company''s R&D department isheaded by Dr. C. Sankar Rao who has over 31 yearsexperience in drug and pharmaceutical R&D including 25years in Indian Drugs and Pharmaceuticals Ltd. (IDPL).The Company had entered into an agreement with IndianInstitute of Chemical Technology (IICT) Hyderabad forprocess know-how for the manufacture of 2 of its productsKetorolac Tromethamine and Enalapril Maleate on 2nd December 1992.Neuland Drugs & Pharmaceuticals Private Limited (NDPL) acompany set up by the promoters to manufacture bulk drugswas incorporated in 1988 and merged with NeulandLaboratories Limited with effect from April 1 1992 as perthe Scheme of Amalgamation approved by the High Court ofAndhra Pradesh on April 6 1993. As per the scheme onefully paid up equity share in Neuland Laboratories Limitedwas exchanged for every seven fully paid up equity sharesheld in NDPL ranking pari-passu with the existing sharesof Neuland.