Adithya Alkaloids

Adithya Alkaloids of Hyderabad, which is promoted by M Sridhar and M C Reddy, who also have established Adithya Exports, which posted a net profit of Rs 55 lakh on a turnover of Rs 3 crore during 1991-92, is setting up a Rs 4.10 crore project for the manufacture and export of value added alkaloids, vincristine sulphate BP/USP, an antineoplastic alkaloid finding application in chemotherapy of cancer, using catharan- thus roseus (CR) leaves as the base material, which are grown extensively in Andhra Pradesh and Tamil Nadu. The plant at 30 kms from Hyderabad for this 100 per cent ex port-oriented project is expected to commence trial production next January and it is to start commercial production by the first quarter of 1993. Finance for the project is to coin- prise Rs 3.60 crore of equity funds (Rs 1.44 crore of it as promoters contribution) and a term loan of Rs 50 lakh from Vysya Bank. The company is offering out of a capital issue of Rs 2.16 crore equity shares worth Rs 1.84 crore to the public opening the lists for subscription on July 27, with Canfina and Fairgrowth Financial Services as the lead managers of the public issue. In addition to contracting with leading traders in Tuticorin for supply of CR leaves, the company plans to start a herbarium as well as a pilot plant and establish its own CR leaves plantations, to secure required supplies of the raw material. Plant and machinery, excepting for the high pressure chromotagraphy unit and some critical quality control equipment, is also to be procured indigenously. Imports will be duty free and indigenous supply of capital goods will be exempt from excise duty for the 100 per cent export-oriented project. For exports, the company is to employ the market network which Adithya Exports has established. Besides, it has made an agreement with Global Chemical of the US for arranging for FDA-USA registration as well as for export of the products for a period of five years.