Chandigarh-based Surya Pharmaceutical Ltd(listed on BSE, NSE), the flagship company of Rs 1600 crore, Surya Corp is planning to set up a fully integrated unit comprising API’s and formulation in Punjab with an investment of Rs 1000 crore.

The company is evaluating various options for raising the funds to undertake the proposed expansion. It is contemplating to raise Rs 450 crore through foreign currency convertible bonds(FCCB) and compulsory convertible preference shares(CCPS) route. Further, the remaining project cost would be funded through borrowings from banks as term loan and ECB(External Commercial Borrowings).

Speaking to Business Standard, Surya Pharmaceutical Ltd, Chairman and Managing Director, Rajiv Goyal said, "Considering the huge size of the Neuropsychiatry market in India which is valued at Rs 3000 crore, we are keen to set up integrated unit comprising API’S and formulations. We are examining various options to raise money for the proposed project. We are looking to raise Rs 450 crore through FCCB and CCPS route. Also, Rs 500-600 crore would be funded by banks as term loan and ECB(External Commercial Borrowings). Already we have started the process and the entire exercise would be completed in next two months."

The company recently launched its super specialty Neuropsychiatric division called ALVIN. At present it is outsourcing Neuropsychiatric division product through contract manufacturing and in the long run it has plans to set up his own unit to undertake manufacturing.

Elaborating further, Goyal said, "ALVIN is the sixth division of the formulation division of Surya Pharmaceutical Limited. We started formulation division in December, 2009 and achieved topline of Rs 15 crore by March 2011 and expect to achieve topline of Rs 50 crore during 2011-12.

The earlier existing five divisions include Alexus (general products); Altair (diagnostic and medical equipment); Adonia (gynae care), Acucare (critical care) and Aegis (generic formulations). SPL is also launching shortly its seventh division, Auskin which will be dedicated to skin care."

Sharing about the potential of the Neuropsychiatry market, Goyal stated, " The size of the Neuropsychiatry market in India is Rs 3000 crore which is growing at the rate of 15% annually. It has entered into the domain of Neuropsychiatry with a view to leverage this potential and with the launch of ALVIN. The major therapeutic segments being covered under the division are anti-epileptic, anti-depressant, anti-psychotic, anti-migraine, Anxiolytic & sexual dysfunction, Prokinetic etc.

Talking about the business strategy Goyal said, "ALVIN has been launched at 120 headquarters with 160 sales professionals on pan India basis and will be covering around 15000 leading neurologists, psychiatrists & neuro-physicians. In the first phase, ALVIN is coming up with 15 major neuropsychiatric molecules which include Escitalopram, Mirtazapine, Divalproex, Levetiracetam, Oxcarbezapine, Dapoxetine, olanzapine, Clonazepam etc and also planning to launch two formulations for the first time in India (Escitalopram + Olanzapine & Dapoxetine + Sildenafil) in the second phase."

The company did a turnover of Rs. 1620 crore in the last financial year and this year it is targeting a growth of 30-32 per cent in over the last fiscal year.

It is worth mentioning that a Rs 1600 crore group, Surya Corp is an integrated group of companies, with diversified interests in pharmaceuticals, healthcare, education, pharmacy retail and beverages. Headquartered in Chandigarh, its companies have rapidly emerged as leaders across all its businesses and have gradually established a global footprint with acquisitions and customers in more than 90 countries.