The manufacturer of medical diagnostics and interventional products, Opto Circuits India (OCIL), is looking to develop a single-product special economic zone (SEZ) at Hassan in Karnataka while shelling out around Rs 150 crore. The company has already acquired 250 acres of land from Karnataka Industrial Area Development Board (KIADB) for Rs 40 crore.
The greenfield manufacturing facility to be developed at the industrial growth centre in Hassan will require investment of Rs 100 crore for building up the new plant and machinery.
The Bangalore-based company is now waiting for clear indications on the SEZ guidelines from the government as the incentives provided for the export oriented units (EoU) are expiring in March 2010 and the proposal for extending the same is currently under consideration.
The company will start working on the proposed SEZ without more ado if the EoU incentives are not extended by the government and will shift its entire new product manufacturing work to this SEZ.
OCIL has lined up for around 4-5 products for exports market which will be unveiled once they get requisite approvals from the respective regulators, apart from this the company is also expected to launch its five new products in invasive and non-invasive products range under the regulated markets in next 8-12 weeks time.
It will be launching some of its new product in domestic market as well in the last quarter of this year for which the approval is due from the Drugs Controller General of India (DCGI).
The company has already planned for an qualified institutional placement (QIP) of up to Rs 400 crore and the funds raised in the process will be utilized for setting up of the SEZ and executing other expansion plans along with reducing its debt burden which currently stands at Rs 300 crore.
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