Hemas to invest Rs 2.9 bn in pharmaceutical plant | Daily News


Hemas to invest Rs 2.9 bn in pharmaceutical plant

Murtaza Esufally
Murtaza Esufally

Morison PLC, a fully owned subsidiary of Hemas Holdings PLC, will invest over Rs. 2.9 billion to build Sri Lanka’s largest pharmaceutical manufacturing plant in Homagama.

The ground braking on the two acre plant, would take place next month, Managing Director, Morison, Murtaza Esufally said.

Speaking to the Daily News, he said that the factory would be ready in 2021. He said that they are already manufacturing some pharmaceuticals at their factory in Mutwal, while 50% of this operation too would be moved to the Homagama Plant.

Esufally said the decision to invest was made mainly due to the Health Minister’s forward buying agreement which is effective for 10 years. “This gives us an assurance of sales which is very encouraging.”

He said that they are now in the process of obtaining international accreditation and approval for EU and GMP compliant manufacturing and certifications which would be completed early next year. “We will also look at signing up with Indian Parma companies to export drugs to India and the region. Main areas of exports to India would be Diabetic and cardio vascular related drugs. We will also look at Parma exports to EU from 2021 end.”

“We are confident the ROI for this project would be around 6 years.” The new plant would manufacture around 5 billion tables per year for both local and foreign consumption. Asked if they would move in to the manufacture of medical equipment, he answered in the negative.

“Over six decades we’ve held the position as Sri Lanka’s leading pharmaceutical importer and distributor and currently, hold 22% of the market share and our annual turnover exceeded Rs. 11 billion. Since 2021, we become a Parma exporter as well as bring in valuable foreign exchange to Sri Lanka.” Hemas Holdings Plc has purchased a 71.5% voting stake in J. L. Morison Son & Jones (Ceylon) PLC.

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