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State-Run Drug Companies Banking on Realty Pill to Boost Bottom-Line

June 27th, 2008 · No Comments
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State-run pharmaceutical corporations, struggling to survive competition with private sector companies, are now emerging in a new avatar –– as developers of commercial complexes and IT parks because of their massive land holdings.

The recently-revived Bengal Chemicals and Pharmaceuticals Ltd (BCPL) is building a 38-flats sky scraper at Worli in Mumbai overlooking the Arabian Sea. The new office complex at this two acre land in the heart of Mumbai will be ready in about 18 to 24 months.

The company intends to offer the space on a 99-year lease. Potential tenants have already pooled in money for the Rs 300-crore construction, it is understood. Public sector developer National Building and Construction Corporation (NBCC) is assisting BCPL in this venture.

Another state-run company, the Indian Drugs and Pharmaceuticals (IDPL), which is awaiting a revival package from the government is planning to leverage its vast real estate assets in Hyderabad, Rishikesh, Gurgaon and Chennai for developing large commercial facilities like software and biotech parks as well as educational institutions.

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