SPMC to invest Rs. 90m for production, warehouse facilities

ANJANA SAMARASINGHE

The State Pharmaceuticals Manufacturing Corporation (SPMC) will invest Rs 90 million to expand their production facility and warehouse facility this year.

Chairman/Managing Director of SPMC M.A.P Hemachandra told Daily News Business that the corporation hopes to increase its production capacity to 1500 million capsules and tablets per year.

The Corporation produced 1032 million capsules and tablets last year and it was 1025 million in 2007. We are planning to introduce at least

one new item for our product portfolio every year. In 2006 we had 55 items and 2008 it was 59 items.

On financial performance, he said last year the corporation recorded a turnover of Rs 890 million last year and it was Rs 599 million in 2007.

This year we are targeting Rs 1100 million - Rs 1200 million, he said. The increase in working hours has helped us to increase our operational profit. In 2007 our operational profit was Rs 37 million and last year it was Rs 74 million, he said.

The Corporation is now focusing on high value items such as Amoxicillin and Clofazimine. SPMC provides 60 per cent of the local Amoxicillin requirement.

There are 14 pharmaceutical manufacturing companies in Sri Lanka which provides 15 per cent of the country’s pharmaceutical requirements. Of this the SPMC contributes 60 per cent of the requirement and the private manufacturers produce the balance.

Sri Lanka spends over Rs 15 billion on pharmaceutical imports annually. Business expansion is very slow in the local pharmaceutical industry due to the high investments needed for expansion projects, he said.

The SPMC exports its products to Bangladesh and Papua New Guinea. It is difficult to enter the Indian market since Indian products are highly price competitive and low in quality, he said.