Ajanta Pharma sets ₹ 250 cr capex for current year

New Delhi DRUG maker 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, a top company official said.

The Mumbai-based drug maker operates eight manufacturing facilities in India and Mauritius, including two plants which 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," Ajanta Pharma Managing Director Yogesh 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 - the world's largest market for pharmaceutical products. 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 outlook for the domestic business, Ajanta Pharma Joint Managing Director Rajesh Agrawal said the drug maker is working on multiple opportunities. "Unfortunately, I will not be able to put a number to that, (because) as a matter of policy we don't give guidance on the new brand launches that we intend to do, but we have exciting opportunities that have been lined up," he explained. 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.