What is the Supriya Life science’s outlook for next 5 years?
Supriya Lifescience Ltd. intends to significantly increase its income over the
following five years, doubling it by fiscal year 27. This expansion will be fuelled
by adding new products, penetration into regulated markets and CMO
opportunities. In the short term, we predict 21-22% sales growth in FY25, while
maintaining a good EBITDA margin of 28-30%. In addition, we intend to invest
Rs 100 crore in capital expenditure over the next two to three years, which
would be paid exclusively from internal resources and without the use of debt.
What are the Investment plans of the Company?
Supriya Lifescience’s investment plans anticipate tremendous development in
the next years. The company intends to increase its sales to Rs 1,000 crore in
three years by expanding into higher-margin niche markets and improving its
product offerings. To achieve this aim, Supriya Lifescience is investing around Rs
60 crore in a new facility in Ambernath, near Mumbai, that will focus on CMO
opportunities in finished dosage area. It also intends to offer six to seven novel
compounds addressing areas such as anti-anxiety, anaesthesia, and anti-
diabetes.
The company’s investment in research and development (R&D) is critical for
developing a pipeline of novel molecules. Furthermore, Supriya Lifescience is
planning to enter highly regulated markets while also investigating contract
development and manufacturing options to fuel its growth. Supriya Lifescience,
which generates more than 80% of its income from exports, is looking to expand
into North American markets in addition to its strong position in China, South
America, and the Asia-Pacific area. Notably, the business has already begun
filings in the United States and Europe for numerous of its goods.
Supriya Lifescience employs a backward integration strategy to enhance supply
chain stability and reduce price volatility for its core APIs.
Furthermore, the company’s commitment to innovation can be witnessed in its
establishment of two new R&D centres: one for product lifecycle management at
the current Lote site, and another with a pilot plant for new molecules, contract
development, and marketing at Ambernath. Supriya Lifescience has obtained an
80,000-square-meter plot of land at Isambe Industrial Park near Pen in the
Raigad district for future growth, indicating its long-term vision and strategic
planning.
What are the new segments that Supriya Lifescience Specifically looking at?
To ensure long-term success, Supriya Lifescience continues to focus on growing
product offerings and broadening its portfolio. While our Analgesic/Anesthetic
sector continues to perform well, other segments have shown minor dips, as is
typical of quarterly changes in therapeutic performance. However, the bulk of
our medicines are exhibiting growth patterns. We have strategic goals to
strengthen our sectors even more. We are actively broadening our portfolio by
adding additional medicines. We have expanded our product line to include anti-
anxiety and anti-diabetic drugs. This expansion demonstrates our dedication to
supporting varied medical demands and broadening our market reach. Thus, by
continuously assessing market demands and innovating our product portfolio,
we aim to enhance the performance of all segments, ensuring sustained growth
and value for our stakeholders.
Are there any plans of the company for expansion of Portfolio?
We are actively broadening our product portfolio and entering new markets to
lessen our dependency on certain goods and users. We are broadening our
portfolio by launching new goods and cures. Throughout addition, we are
working to get regulatory clearances throughout North and Latin America. Our
recent ANVISA audit clearance with no concerns strengthens our belief in these
initiatives. We invested between Rs 60 and 70 crores on Module E, which will
shortly quadruple our production capacity to 900KL. This growth not only helps
us with our new goods, but it also creates prospects for collaboration.
Furthermore, we’re planning to invest another Rs 60 crore in our Ambernath site
to set up a bottling line for a new anaesthetic product. With the global market for
this product valued at $ 300 million, we see promising growth potential in this
expansion.
Why are Chemical Companies entering into Pharma?
Several strong considerations are driving chemical companies to invest in
India’s pharmaceutical business. For example, the phenomenal growth
experienced in the Indian chemical sector outperforms broader market indexes
and is expected to continue, creating an appealing investment environment.
Second, the increase in domestic demand, together with India’s expected
contribution to global chemical consumption, creates a profitable market
potential. Third, increasing worldwide consumer demands for eco-friendly
products may benefit India, given its considerable chemical production
capability.
Furthermore, in the face of changing geopolitical dynamics and the necessity for
resilient supply chains, companies are looking to diversify manufacturing areas,
which adds to India’s appeal. The rising pharmaceutical industry in India, driven
by population growth and economic prosperity, has significant growth potential,
particularly for pharmaceuticals that treat chronic conditions. India’s proven
manufacturing capabilities, notably in generics and vaccines, position it as a
major participant in the global pharmaceutical industry. Furthermore,
advancements in the Intellectual Property Rights (IPR) environment increase the
appeal of the Indian market to global pharmaceutical producers. These
converging characteristics not only make India an appealing market for
pharmaceutical expansion, but also present considerable opportunity for
chemical businesses to diversify their operations successfully.