Square Pharma set to launch factory found in Kenya
Square Pharmaceuticals will launch its production facility in Kenya within the next four months found in a move which will considerably enhance the company's revenue from East African nations.
The local medicine maker broke ground on its manufacturing facility in Nairobi back 2018 and although the machine was initially set to start production in 2020, the project was delayed by unavoidable circumstances.
"However, it really is now in the ultimate stage of implementation regardless of the Covid-19 scenario," explained Samuel S Chowdhury, chairman of Square Pharmaceuticals, in the business's total annual report for 2019-20.
"As the situation improves, the company will continue steadily to avail every chance to even more expand and join the club of multinational companies found in Bangladesh," he added.
With the state-of-the-art machinery, Square Pharmaceuticals Kenya EPZ Ltd aims to fulfil the unmet demand for drugs in Kenya, Tanzania, Rwanda, Burundi, Uganda and South Sudan.
The full total project cost is estimated to be $17 million and working capital is $3 million, according to the company's total annual report.
Of the amount, $12 million will be financed by Square Pharmaceuticals as equity investment while the rest will be financed through loans.
"We have a gathering with the market ministry of Kenya today for the reason that plant is almost prepared," Tapan Chowdhury, managing director of Square Pharmaceuticals, said yesterday.
Chowdhury made these comments at a virtual program organised by the Center for Policy Dialogue.
"We will hopefully be able to start manufacturing at the plant by July or perhaps August," he added.
This is an initial for the united states that, with permission from Bangladesh Lender, a local company is establishing a drug production facility abroad.
"This is a major stage for Bangladesh," Chowdhury said.
In the Kenyan company, Square Pharmaceuticals holds 100 % nominal share capital of 80 crore Kenyan shillings (KSH) having 8 lakh shares of KSH 100 each (1 Kenyan shilling equals US$ 0.0093).
The principal activity of the company is to produce and sell generic pharmaceutical products in Kenya and most the East African community.
Square Pharmaceuticals offers obtained clearance from the Pharmacy and Poisons Plank, Kenya for setting up the plant on the banks of the Athi River.
Trial production at the brand new facility is expected to commence on July 31 this season, the gross annual report said.
The company's net reduction for the financial year that ended on June 30, 2020, is KSH 61.55 lakh and total accumulated loss is KSH 2 crore since it is yet to create earnings while incurring administrative bills and foreign exchange loss, it added.
Square Pharmaceuticals has 859 goods. Of these, 637 are pharmaceuticals, 134 are agrovets and 36 are pesticides and so on.
The leading medication maker's export industry covers over 43 countries. During 2019-20, the company's exports amounted to Tk 165 crore, which is just about 11 per cent greater than that of the prior year.
Since 1985, Square Pharmaceuticals has held the most notable area in Bangladesh's pharmaceuticals sector.
