Supriya Life Challenges China's Dominance On Drug Ingredients For Topline Boost

Supriya Lifesciences Ltd. is on track to take on the dominance of Chinese drug manufacturers with the launch of its new active pharmaceutical ingredients, the pharma major’s Executive Chairman and Whole-Time Director Satish Wagh said.

The Mumbai-headquartered pharmaceutical company is already working with three to four companies in the contract manufacturing organisation and contract development and manufacturing organisation space, Wagh told NDTV Profit.

While the company has so far focused on APIs manufactured by Chinese players, he said, “we are going to crack some products that are exclusively manufactured by China. Those products will deliver us better results and Ebitda margins in the next two quarters”.

To execute these projects, the company has embarked on an expansion drive. It is about to start a new manufacturing facility in Maharashtra’s suburban city Ambernath.

Additionally, Supriya Lifesciences has increased the capacity at its Lote Parshuram facility in the state, Wagh said. The capacity of these plants will be fully utilised in the next two years.

“Three to four Chinese manufacturers are taking care of the entire market. We are not going to fight with any manufacturer in India but are going to take the business from China. People are interested in signing the contracts and coming forward for these products,” Wagh said, while talking about the new products.

He was confident of doubling the company’s revenues in the next three years along with better Ebitda.

“We will do our best with regards to revenue because our capacity at Lote Parshuram is increasing and Ambernath too. The new basket will give better revenues and Ebitda,” Wagh said.

“Supriya is going to take away the cream of the products because there is no competition from India at all. In fact, the domestic market is also asking us to field these products in Indian markets. But for better margins, we continue to go with our export shares of 90%,” he added.

Wagh revealed that the new APIs will be fully backward-integrated with no players from India in this space. 

Supriya Lifesciences will continue to amp up the capex as the requirement comes up, Wagh added. 

"As the need comes, we are ready for capex and there is no need for waiting. We have purchased land in Isambe Industrial Park near Patalganga. We have taken 25 acres of land and the capex for that was Rs 58 crore. That land will be utilised for our future," he said. 

The API manufacturer and supplier had purchased land in Isambe Industrial Park in Maharashtra’s Raigad district back in 2022.