Halal Industry

Malaysia’s Pharmaniaga expects double digit growth from Indonesia

| 11 April, 2018
 FARAH ADILLA
Malaysia’s Pharmaniaga expects double digit growth from Indonesia
Pharmaniaga logo on building. Source: New Straits Times

APRIL 11, 2018 | 1:11PM MYT | PETALING JAYA, MALAYSIA

Pharmaniaga Bhd expects a 17 to 18 per cent growth from its Indonesian operations this year, as its halal products gained more traction in the country over the last few years.

Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said its two units in Indonesia had contributed 32 per cent of the group’s revenue of RM2.3 billion last year.

“Our business is Indonesia has been doing very well, with both of our operations there namely PT Errita Pharma and PT Millennium Pharmacon International Tbk being profitable last year.

“We are confident that Indonesia will continue to do well and contribute profit to the Group in the future,” he told reporters after Pharmaniaga’s annual general meeting here today.

Meanwhile, Pharmaniaga managing director Datuk Farshila Emran said the company was allocating RM75 million in capital expenditure (capex) this year.

“This capex will be used to upgrade our machineries and warehouses for our plants. This is a testament to the group’s commitment to investing for our future,” she said.

Farshila said Pharmaniaga was in midst of a feasibility study to set up a halal vaccine plant.

The site could be in Seri Iskandar in Perak or Sungai Petani in Kedah, and not in Puchong as earlier announced.

The plant, which the group claimed to be the first halal vaccine plant in Malaysia, is part of its effort to lessen its revenue dependency on government concession business.

“We planned to go for commercialisation by 2024. And the commencement could start between 2020 and 2023,” she said.

It was earlier reported that Pharmaniaga was investing RM100 million in the next five years to make halal and affordable vaccines for local use and export.

This follows a collaboration agreement with Technology Depository Agency (TDA) and India-based Hilleman Laboratories in December last year.

Under the partnership, Pharmaniaga will establish halal vaccines manufacturing facility here, conduct clinical trials, manage regulatory matters and facilitate products’ commercialisation.

Copyright New Straits Times