ACG invests B1.85bn on Rayong capsule factory

ACG Worldwide, an Indian producer of hard capsules for the pharmaceutical industry, has invested 1.85 billion baht to build a factory in Rayong province.

The company has also invested 782 million baht in a facility producing hard and soft gelatin to supply its capsule factories, said ACG Worldwide chairman Ajit Singh.

The Mumbai-based company, the world’s second largest maker of empty hard capsules, was established 50 years ago and operates in more than 100 countries with 3,200 employees.

ACG’s new hard capsule factory, which is under construction, is located on a 120-rai plot in Rayong’s Hemaraj industrial estate. It is expected to start operating in mid-2018, said Mr Singh.

“The annual production capacity of the factory will be 10 billion empty hard capsules from the 24 machines that are due to be installed. The company expects the factory to help generate US$50 million revenue a year,” said Mr Singh.

He said the empty hard capsule factory, the first in Thailand, is expected to serve demand from the pharmaceutical industry in Asean as well as Japan and China.

Around 70% of the capsules produced by the factory in Thailand will be for export, while the rest will be for the domestic market.

The factory is expected to create 300350 jobs, which will be a boon to the local economy.

Mr Singh said ACG Worldwide is interested in Thailand as the country is located in the centre of Asean, which makes it easy for the company to export and expand its business in Southeast Asia.

Industry Minister Atchaka Sibunruang said ACG Worldwide’s investment would not only help create jobs and boost the domestic economy, but would also help improve Thailand’s pharmaceutical industry and medical sector as the company has up to 200 employees and researchers developing new products.

“The capsule factory is part of the medical industry, which is one of the targeted industries that the government aims to promote. We expect the improved medical industry will help drive Thailand to be the medical hub of Asean in the near future,” she said.

She added that a delegation of Thai entrepreneurs and officials will hold a roadshow in India to woo Indian investors.