Caplin Point working on ₹550-crore capex expansion

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. 

HBL