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Aurobindo Pharma to invest Rs 2k cr in AP plant
Aurobindo Pharma to invest Rs 2k cr in AP plant
Aims to complete Penicillin G plant in Andhra Pradesh by March 2024
Hyderabad: Aurobindo Pharma's aims to complete its Rs 2,000-crore Penicillin G (Pen G) plant in Andhra Pradesh by March 2024 even as the trial or the pilot batches will take place starting October next year onwards, S Subramanian, Chief Financial Officer, Aurobindo Pharma has said. Replying to a query during the recent earnings call, he said the overall project of $235 million, the major will be to put a de-salination plant, the fermentation process, power blocks, among others and multiple subprojects are being done with purchase orders been issued.
"So, we believe by next September or October, the installation should be over. After that, the trial or the pilot batches will take place starting October next year onwards. So, our target is to complete the projects by March'24 and it's our endeavour to advance it," Subramanian said.
"The material is expected to be received in this quarter and the next quarter and significant portions of the buildings and blocks have been done," he further said.
According to him, out of Rs 2,000 crore, the drug maker has already spent around Rs 500 crore and Rs 1,500 crore is going to be spent in the coming year.
The production capacity of the plant will be around 15,000 tonnes annually.
The pant been approved under Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country.
"The business generated a free cash flow before CapEx and other items of $82 million during this quarter. This was spent towards CapEx including USD 31 million for PLI Penicillin G Project. With this, so far, the investment in PLI Penicillin G Project (was) around $63 million against the budget of $235 million," he said.
Replying to query, Yugandhar Puvvala, CEO of Eugia Pharma Specialties, a wholly-owned subsidiary of Aurobindo Pharma said the company is expected to launch roughly around 20-odd products in this financial year in USA and also expecting some limited competition product approvals hopefully starting from a few days.
