The Mumbai-based Unichem Laboratories [Get Quote], after closing the remaining 40 per cent acquisition in the UK joint venture company Niche Generics, is planning to set up an additional formulation packaging facility in Ireland.

The new UK facility is to accommodate the expansion of Niche's product portfolio with new products from the Indian company.

P A Mody, chairman and managing director, Unichem Lab told Business Standard that since the UK company has already become a wholly owned subsidiary of Unichem, there will be more investments from the company to expand the European generics market.

The new packaging facility will be the first such investment. With this, the company will be able to expand the product basket of Niche Generics immediately by exporting a range of new active pharma ingredients from its facilities in India.

However, Mody declined to comment about the size of investments in Europe including the new facility in Ireland. Niche Generics has its manufacturing facility in Ireland at present.

This week, Unichem had raised its equity in Niche Generics to 100 per cent from the original 60 per cent. The total investment for the remaining 40 per cent equity acquisition in the company is not disclosed.

Unichem had acquired 60 per cent stake in Niche Generics in 2002. This UK joint venture company was engaged in developing, marketing and selling of generic pharmaceutical products in European Union countries.

Mody said that Unichem expects accelerating exports to Northern and Central European markets after the UK company became its wholly owned subsidiary.  It is expected to post at least 20 per cent revenue growth for the year to March 2007, he added.

Unichem currently exports active pharmaceutical ingredients and formulations to more than 25 countries, expects exports to rise by 50 per cent to Rs 1.4 billion (Rs 14 million) in this financial year compared to 35.6 per cent rise last year.

The company is also currently looking at expanding its domestic portfolio by acquiring/licensing leading brands from international companies.