Chennai, July 29 (IANS) Cephalosporin bulk drug major Orchid Chemicals and Pharmaceuticals Ltd is planning to foray into formulations in niche therapeutic segments this fiscal at an outlay of around Rs.200 crore, said a top company official here Friday.

Speaking to reporters on the sidelines of company Annual General Meeting, chairman and managing director K.Raghavendra Rao said the proposed investment would support the company's entry into therapeutic segments where the manufacturing process is difficult.

At the general body meeting, the shareholders approved Orchid Chemicals raising long term funds not exceeding Rs.1,000 crore from domestic or overseas capital markets.

The amount such raised would be used to redeem the outstanding foreign currency convertible bonds (FCCB) to the tune of around $117 million and for other business operations.

According to Rao, the company is in dialogue with the Tamil Nadu Pollution Control Board (TNPCB) to reopen its active pharmaceutical ingredients (API) plant here. The plant was ordered to be closed by TNPCB for not complying with the solid waste disposal norms.

Meanwhile the company closed the first quarter with a total income of Rs.383.59 crore in comparison to Rs 330.93 crore registered during the corresponding first quarter of last fiscal.

The after tax profit stood at Rs 15.54 crore compared to Rs 21.61 crore logged during the corresponding period last fiscal.