New Delhi, Sept. 19: Salil and Sanjay Kapur ? the promoters of the Malanpur division of Atlas Cycles Ltd ? today announced that they would invest Rs 50 crore to set up a pharmaceutical unit.

But soon after the announcement, parent company Atlas informed the stock exchanges that the proposal of entering into the pharmaceutical business was never considered by its board and this was an initiative taken by the promoters of the Malanpur division in their personal capacity.

Salil Kapur, president, Atlas Cycles (Malanpur Division), announced that they were going to set up a pharmaceutical unit with an initial investment of Rs 50 crore in a 10-acre plot in Haridwar, Uttaranchal.

The promoters of this pharma venture ? Salil and Sanjay Kapur ? have plans to start their new business under contract manufacturing and establish their own brands over the next couple of years.

Sources said, “The two are currently negotiating with leading domestic and foreign pharmaceutical companies for this project, but nothing has been finalised yet.”

Kapur said, “We have been exploring a number of sectors, but have shortlisted the pharmaceutical sector because it is growing at an impressive pace.”

To start with, the company plans to start manufacturing cough syrups, capsules and tablets.

Later, there are plans to get into injectibles as well.