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Chennai-based Caplin Point Laboratories has earmarked ₹500-550 crore towards capital expenditure (capex). It includes expansion of existing capacities, additional manufacturing sites to widen the product range, and to achieve backward integration for a majority of products.
Established in 1990, the Chennai-based drugmaker began with manufacturing a range of ointments, creams and other external applications. The company has since expanded into manufacture of pharmaceutical formulations and therapeutics both under generic and branded categories. Its product portfolio includes tablets, capsules, injections, liquid orals, and ointments and creams.
Currently, Caplin Point and its subsidiary Caplin Steriles have manufacturing plants and facilities in six locations including Tamil Nadu, Puducherry and Andhra Pradesh.
In its earnings presentation, the company said, it has completed expansion activities in the softgel manufacturing plant in Puducherry in Q4FY23. The company said its ongoing projects: Phase 2&3 expansion of Caplin Steriles plant in Gummidipoondi (Tamil Nadu), general API manufacturing plant (Andhra Pradesh), manufacturing plant for oral solid dosages (OSD) and injectables for oncology near Chennai are expected to be completed by the current fiscal. The company also said it will commence work on a facility for oncology API manufacturing and another facility for OSD in the first two-quarters of FY25.
“The capex will be financed solely through internal accruals and the company will remain net cash positive throughout the process,” it added.
Regulated markets
In Q1FY24, Caplin Point reported a 21 per cent year-on-year growth in consolidated net profit of ₹104 crore while its revenue grew by 14 per cent to ₹395 crore. Latin America and Rest of World contributed 88 per cent of the revenues while the remaining came from the US market.
The company is looking to scale up the business in regulated markets like the US and Europe. For instance, the phase 2 & 3 expansion of Caplin Steriles plant will enable the company to further scale up manufacture of injectables and ophthalmics to the US market.
“With a strong order book, we are optimistic about achieving 40-50 per cent revenue growth (in the US market) in FY24. We aim to achieve this growth through strategic new product launches and by increasing our market share for existing products,” CC Paarthipan, Chairman, Caplin Point Laboratories, said in the company’s Q1 earnings note.
It also recently set up a front end in the US, Caplin Steriles USA Inc, to focus on direct sales, marketing and distribution of products manufactured by Caplin Steriles Ltd.
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