Chennai-based Caplin Point Laboratories has laid out a ₹350 crore capex plan to expand its existing capacities and invest in greenfield projects to widen its product portfolio and backwards integrate some of its products.

“Between now and H1FY25, we will be expending ₹350 crore in capex for our ongoing projects and greenfield expansions,” D Muralidharan, CFO, Caplin Point Laboratories Ltd., said at the company’s Q4FY23 earnings call.

Established in 1990, Caplin Point Laboratories is into R&D and manufacturing of finished formulations and active pharmaceutical ingredients (API). The company manufactures a range of finished dosage forms, including tablets, capsules, injections, liquid orals, and ointments and creams under generic and branded categories. 

While Caplin Point Laboratories caters predominantly to emerging markets of Latin America and Africa, its wholly-owned subsidiary Caplin Steriles Ltd., caters to regulated markets, such as the US and Europe, for injectable and ophthalmic products.

Also read: Caplin Point subsidiary gets third USFDA approval for injections in a month

Caplin Point’s main facility is located in Puducherry, which produces sterile liquid and lyophilised injectables, tablets, capsules, liquid orals, and soft gelatin capsules to name a few. It also has manufacturing plants in Chennai and Himachal Pradesh. Caplin Steriles has a plant in Gummidipoondi near Chennai for manufacturing pre-filled syringes, vials, etc. 

The company said the capex outlay includes Phase 2 and 3 expansion of Caplin Steriles, which will add a new pre-filled syringe line and a standalone plant close to the current site for high Lyophilisation capacity and add complex dosage forms, such as inhalations. 

Caplin Point also acquired an API plant in Vizag, Andhra Pradesh to backward integrate some of the products to the regulated markets with its own APIs. It also started work on an API manufacturing for oncology products to Latin America adjacent to its finished dosages oncology plant at Kakkalur near Chennai. This plant is expected to be completed Q3FY24.

Muralidharan said the phase 2 & 3 projects of Caplin Steriles will consume between ₹150-170 crore, while the oncology project expansion at existing facilities will consume another ₹50 crore in capex. The new greenfield oncology project will consume another ₹150 crore. 

Muralidharan said the company is planning to fund all the capex through internal accruals, and it currently has ₹1,500 crore in liquid assets as of FY23.