GSK to sell 60-acre property in Thane

Written by Pallavi Ail | Shubhra Tandon | Mumbai | Updated: Apr 18 2014, 09:15am hrs
GlaxoSmithKline Pharmaceuticals is looking to sell its 60-acre property in Thane district. Realty experts have pegged the value of the land in the range of R1,600 to R1,800 crore.

We are doing remediation of the soil and when it is almost over we will try and sell the land if we can find a buyer during the next one year, GlaxoSmithKline Pharmaceuticals chairman DS Parekh said, while addressing shareholders during the company's annual general meeting on Thursday.

Currently, the land value in the Thane region is between R28 to R30 crore per acre.

In 2012, GlaxoSmithKline closed its factory located on the land that housed an active pharmaceutical ingredient manufacturing unit. The plant had been functional since 1961.

The company had announced on November 14, 2013 that it was planning to set up a manufacturing facility in India with an investment of R864 crore. While the company is looking at a possible site in Karnataka, nothing is finalised as yet.

We have to look at which state gives us more tax concessions, Parekh said.

The company also shared details on products it will add during the year through the parent company's acquisition of US-based Stiefel Laboratories to its portfolio in the current year. The company will also be launching therapies for respiratory problems, skin cancer, diabetes which GlaxoSmithKline Plc has already brought to the market.

The Mumbai-based company will launch a colorectal cancer drug during CY14 and looks to bring a blood cancer drug to market during CY15, according to GlaxoSmithKline Pharma Managing Director Dr Hasit Joshipura.

Referring to the company's poor CY13 financial performance adversely impacted by a host of issues, Parekh said the company expects the effect to continue in the first six months of CY14.

The company reported sales of R2,593.39 crore for CY13, an almost 3% fall from CY12 numbers while its net profit fell 13% year-on-year to R501.88 crore, Parekh said.