Wockhardt UK sells Luton plant, to ramp up Wales unit

Mumbai, October 7, 2004

Wockhardt UK Ltd., the British arm of Indian pharmaceutical major Wockhardt Limited, today announced the sale of its Luton plant near London to UK-based Bristol Laboratories.

Products of Wallis manufactured earlier at Luton, have been shifted to CP Pharmaceuticals’ plant at Wrexham in Wales, and to Wockhardt’s plants in India.

“We are upgrading the Wales plant as Wockhardt’s largest overseas manufacturing base at an investment of one million pound sterling,” Wockhardt chairman Mr. Habil Khorakiwala said.

The upgraded Wales plant will eventually become a manufacturing base for Wockhardt’s German subsidiary esparma GmbH.
The sale of Luton plant marks the completion of restructuring operations after the formation of Wockhardt UK Ltd to integrate the businesses of both Wallis and CP Pharmaceuticals under one banner.

"The sale of the Luton plant will reduce our operating costs and improve the bottomline. Wockhardt UK operations are now fully in sync with the IT, HR, finance and supply chain of Wockhardt headquarters in Mumbai," Wockhardt UK managing director Mr. Sirjiwan Singh said.

United Kingdom is Wockhardt's largest market outside India. UK contributes to approximately 35% of Wockhardt’s consolidated revenue.

Wockhardt is one of India’s premier research and technology-based pharmaceutical companies and a front-runner in biotechnology. Wockhardt has a wide global reach and over the past two years it has made two successful acquisitions in Europe and established its own sales and marketing organisations in the US. More than 60% of Wockhardt’s sales come from international markets. Sales in dollar terms have grown from $25 million 10 years ago to $250 million. Wockhardt’s market capitalisation has grown from $45 million 10 years ago to the $850 million mark today.