Medical devices business could soon be spun off as a 100 percent subsidiary of Morepen Lab, said Sushil Suri, Chairman & MD of the company.
“We are looking at hiving off this division (medical devices) into a separate cell so that it can grow on its own. At some stage we will spin it off and maybe in 2-3 years’ time we will have a separate IPO for this company,” he said in an interview to CNBC-TV18.
He said that they will look to demerge the medical devices business once it hits Rs 1,000 crore topline. “Within 3 years, we are targeting a topline of Rs 1,000 crore. There is of course capex involved and we are open to looking at similar product acquisition also,” he said.
Suri said that they are also looking at expanding the API business. “We want to go for forward integration of the API into the ANDAs. We want to file our own ANDAs where the profit margins would be much higher. But the initial cost would be there. We have 13 ANDAs ready with us; we do not have a facility with us still. So, now with the money coming in, we will be putting international standard ANDA facility also and expanding the API facilities also,” he said.
He also said that the company will be applying for production linked incentive (PLIs) for certain greenfield API projects.
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