Piramal Pharma is deploying approximately $85 million in capex this fiscal year, primarily for capacity expansion and maintenance of CDMO sites. The company has already invested $30 million in the first half of the fiscal year and reported a significant increase in net profit. Piramal Pharma aims to exceed $2 billion in revenue by FY30, with targeted growth in various segments.
Piramal Pharma has announced its allocation of approximately $85 million for capital expenditure (capex) during the current fiscal year, according to Chairperson Nandini Piramal. This investment will focus on capacity expansion, maintenance, and de-bottlenecking initiatives across its Contract Development and Manufacturing Organization (CDMO) sites. Already, around $30 million has been invested in these initiatives during the first half of the fiscal year. The company anticipates that its capex will match last year’s levels, which were also around $85 million. Part of this budget will be directed towards domestic projects, while a significant portion is earmarked for operations in the United States. Approximately $30 million is designated for maintenance, with the remainder aimed at expanding capacity at the company’s facilities in Telangana and Dahej, Gujarat, as well as enhancing operations at select CDMO locations. In addition to these plans, Piramal Pharma reported a notable growth in its financial performance, achieving a consolidated net profit of Rs 23 crore for the second quarter, reflecting a four-fold increase. The company recorded revenues of Rs 2,242 crore during this period, compared to Rs 1,911 crore in the same quarter the previous year. Piramal Pharma Solutions (PPS), its global contract manufacturing division, has committed an investment of $80 million for expanding its sterile injectables facility located in Lexington, Kentucky, with completion anticipated by FY27. By FY30, Piramal Pharma is striving to surpass $2 billion in revenue. The company is focused on its CDMO vertical aiming to develop it into a $1.2 billion entity within the next five years. Additionally, the critical care segment is projected to reach approximately $600 million, while the consumer healthcare division aims for a target of $200 million. To achieve these ambitious goals, the firm is actively exploring opportunities for inorganic growth. Piramal Pharma encompasses several divisions, including Piramal Pharma Solutions, which serves as an integrated CDMO; Piramal Critical Care, specializing in complex hospital generics; and its India Consumer Healthcare unit that markets over-the-counter products.
Piramal Pharma is a prominent organization headquartered in Mumbai, with a robust focus on expanding its global pharmaceutical operations. The company aims to enhance its capabilities and market presence through significant investments in manufacturing and development. By strategically directing its capital expenditures, particularly towards its CDMO segment, Piramal Pharma is positioning itself to meet growing demands in the healthcare market while also achieving substantial revenue milestones over the coming years. The pharmaceutical industry is rapidly evolving, requiring companies to adapt to new challenges and opportunities. Piramal Pharma’s assertive investment strategy reflects its commitment to sustaining growth, enhancing operational efficiency, and building a diverse portfolio of health-related services. The goal of exceeding $2 billion in revenue by FY30 exemplifies its ambition to become a leading player in the global healthcare sector.
In summary, Piramal Pharma is strategically investing $85 million in capital expenditures for the current fiscal year, focusing on capacity expansion and maintenance within its CDMO operations. With an impressive financial performance reported, the company is poised to achieve ambitious growth targets by FY30. Its ongoing commitment to expanding its manufacturing capabilities underlines its determination to be a significant player in the global pharmaceutical arena, while also exploring opportunities for inorganic growth to meet broader market needs.
Original Source: www.business-standard.com
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