Business

Wednesday November 4, 2009

Malladi revives plan to set up ops in Malaysia


CHENNAI: Malladi Drugs & Pharmaceuticals Ltd is reviving its plans to invest up to US$200mil in a research facility and a plant in Malaysia next year.

Managing director Prashant Malladi said the company was now looking for a suitable partner in Malaysia to undertake the project.

The research and manufacturing facilities would generate some 3,000 skilled jobs in Malaysia, Prashant said.

“We made the proposal to the Malaysian Government last year and was conferred the Bionexus status to start the project.

“But because of the global slowdown, we had to postpone it. We plan to revive the project now that the regional economy is improving,” he said.

Privileges of the Bionexus status include 100% tax exemption for the first 10 years of operation in the country and tax exemption on dividends.

Prashant was speaking to journalists during a visit by International Trade and Industry Minister Datuk Mustapa Mohamed to Malladi’s research and development facility in Chennai.

Chennai-headquartered Malladi develops new and generic drugs.

Meanwhile, Malaysian Biotechnology Corp senior vice-president Selvam Ramaraj said Malladi had originally wanted to set up its research facility in Cyberjaya and its plant in Johor Baru.

“It is now exploring other alternative sites,” he said.

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