DUBAI — Gulf Pharmaceutical Industries (Julphar) will be spending Dh406 million for overseas expansion in seven countries over the coming three years, according to the company's CEO, Abdul Razzaq Yousef.

He said this involves the setting up manufacturing plants in Afghanistan, Sudan, Morocco, Lebanon, Yemen, India and Iran between 2008 and 2010. Julphar is investing 15 per cent of a joint venture with the local partner in respective countries.

These plants are part of Julphar's overall three-year project worth Dh1.35 billion involving seven more plants to be opened in Ras Al Khaimah, two of which will open in April, three next year and two more by 2010. This will bring to 14 the total number of Julphar pants in its base.

Yousef said that Julphar, the UAE's largest pharmaceutical firm based in Ras Al Khaimah that sells 90 per cent of its products outside the UAE, would next expand to Turkey, the Philippines, Malaysia and Indonesia.

He added that by 2010, Julphar would have a net profit of Dh560 million out of total turnover of Dh2.2 billion. This year Julphar is looking at a profit of Dh280 million from a turnover of Dh840 million.

The company grew 14.7 per cent to Dh661 million in 2007, doubling its net profit to Dh207 million from the previous year's Dh105 million.

"We've got another good year — just as we did for the past 20 years," Yousef said. He added that the recent gross profit was made up of Dh111 million in Julphar's operations, Dh56 million in investment portfolio and the rest in the selling of equity.

He said that the company, which is publicly traded on the Abu Dhabi Securities Market and growing at an average of 20 per cent per year, would achieve a return on investment in five years.

Yousef announced earlier that Julphar would double its equity base to Dh1 billion from Dh560 million over the coming three years by issuing rights in three tranches at a price of Dh1.75 per share.

"Every year we add 20-30 per cent to our shareholders' equity," he stressed.

Last month Julphar announced the creation of Planet Pharmacies, its Dh900 million joint venture with Global Finance House on a 40-60 shareholding, to build 65 pharmacy outlets in the UAE and 18 in Oman within this year. 

These outlets will eventually grow to 2,000 by 2010 across the Middle East and North Africa, making Planet the largest retailer of health care products in the MENA region.