Hemas to invest LKR 2.9 billion in a pharmaceutical manufacturing plant

 

Morison Plc, a subsidiary of Hemas Holdings Plc, based in Colombo, has opened an $18.5 million pharmaceutical plant that can manufacture 5 billion pills a year. The company estimates can supply 20 percent of the country's consumption, officials said. Morison Plc, which was acquired by Hemas Holdings of Sri Lanka in 2013, claims to be Sri Lanka's largest producer of solid oral pharmaceuticals.

In cooperation with the Sri Lanka Institute of Nano Technology, a science park run as a public-private partnership, the 18.5 million dollar plant building. The plant locates within the Sri Lankan Nano Technology Park in Pitipana, Homagama, on a five-acre plot. It can produce 5 billion pills, 240 million capsules, and 10 million bottles per year out of 100 milliliters.  

He said they are now developing and gaining international accreditation and approval for EU and GMP compliant manufacturing and certification that will be complete at the beginning of next year. We will also look at signing up to export drugs to India and the region with Indian companies from Parma. Diabetic and cardiovascular drugs are the major export sectors in India. We will also look at exports to the EU from Parma from 2021 onwards.

"We are sure that the ROI would be about six years for this project." The new plant will generate around 5 billion tablets per year for both local and international consumption. Asked if they were going to venture into the manufacturing of medical equipment, he replied in the negative. We have held the position of the leading pharmaceutical importer and distributor in Sri Lanka for over six decades.

Currently, We save 22% of the market share, and our annual turnover has exceeded Rs. 11 billion. We have been a Parma exporter since 2021 and have taken valuable foreign exchange to Sri Lanka. Hemas Holdings Plc has acquired a 71.5 percent voting stake in J. PLC from L. Morison Son & Jones (Ceylon).

OSL Take: Sri Lanka's health sector is engaged in constant upgrading, and the Sri Lankan government is also engaged in introducing new technologies in par with the latest international trends in the country. Therefore, there are ongoing business/investment opportunities in Sri Lanka's health sector. Foreign health companies could explore options for business in Sri Lanka.

Given the many projects that range from the construction of the state hospital network to the manufacture of pharmaceuticals and medical supplies, Sri Lanka's health sector is a hotbed for investment. Interested foreign investors could explore investment opportunities in Sri Lanka's health sector. In the South Asian zone, Sri Lanka enjoys active trade and bilateral relations with countries.

Sri Lanka also enjoys free trade accords with India and Pakistan, while other South Asian countries enjoy preferential treatment. The geographical location of Sri Lanka in the Indian Ocean, the country's ease of doing business, and the many trade accords and trade compromises enjoyed by the state have made it an attractive business destination in the region of South Asia. To engage with other South Asian countries, foreign companies/investors looking at doing business in the South Asian area might consider setting up a base in Sri Lanka.

VBS/AT/0511/2020/Z_TB3