Ajanta Pharma lines up CAPEX of Rs 250 crores for current fiscal

Ajanta Pharma has lined up a CAPEX plan of Rs 250 crore for the current fiscal as it looks to expand its corporate office and production facilities, said Yogesh Agrawal, MD, Ajanta Pharma.

The drugmaker operates eight manufacturing facilities in India and Mauritius, including two plants that have been approved by the US Food and Drug Administration (USFDA).

“During the current year (FY22), we are estimating the CAPEX to be in the vicinity of Rs 250 crore. It will largely go towards maintenance and some new expansions for the corporate office and some key expansions in the facility,” Agrawal said in an analyst call.

The company had earmarked a CAPEX plan of Rs 150 crore for the 2019-20 fiscal.

Agrawal noted that Rs 30 crore was invested in the expansion of the corporate office last year, and this year it is going to be in the range of Rs 60-80 crore.

Ajanta Pharma currently employs over 7,000 people worldwide and its products are sold in over 30 countries, including in the US.

When asked about the company’s business plans in the US, Agrawal said, “Right now, we are giving out the guidance of 10 to 12 filings and correspondingly we should be able to fructify and launch in the market.”

He further said, “As you know, last year it was a very hard lockdown, so because of that the R&D was shut for five months and that is the reason we see those reflecting in the abbreviated new drug application (ANDA) filings for the current year or rather last year. But we believe we have made good progress during the last 5-6 months and currently also, our R&D is operating, if not at a full capacity, but at a reasonably good capacity.”

So the company believes that its ANDA filings will pick up in the current year and it would try to come as close to the target of 10 to 12 per year, Agrawal said.

On the outlook for the domestic business, Rajesh Agrawal, Joint Managing Director, Ajanta Pharma said the drugmaker is working on multiple opportunities.

For the fiscal year ended March 2021, Ajanta Pharma posted a net profit of Rs 654 crore compared to Rs 468 crore in the previous financial year. The company’s revenue from operations came in at Rs 2,890 crore for 2020-21. It was Rs 2,588 crore for the previous financial year.