The company which has two plants in Daman and Jambusar near Vadodara, and plans to add new manufacturing facilities in Daman and Baddi.
Schott Kaisha, the Indo-German joint venture that makes tubular ampoules, vials, glass syringes and cartridges used in pharmaceuticals and cosmetics is investing over Rs 500 crore to set up new facilities and expand existing ones.
The expansion is driven by demand from Indian drug makers that are increasingly launching injectable drugs domestically and overseas.
The company has two plants in Daman and Jambusar near Vadodara and plans to add new facilities in Daman and Baddi.
The company said it plans to start work on a new facility in Daman by end of this year and the Baddi facility in the next few months.
The company said the Baddi facility is meant to be closer to the North Indian market, where Chinese manufacturers are holding sway.
The company, which has invested Rs 250 crore on Jambusar site, said nine lines are under production and nine more will come under production by end of this year.
The company is investing a couple of million euros on each line at the Jambusar unit.
It is also in the process of modernising and consolidating its existing facility in Daman.
“We are seeing an exponential growth after a slowdown two-three years back,” said Rishad Dadachanji, Managing Director of Kaisha Lifesciences in an interview to Moneycontrol.
Schott Kaisha's revenue grew 38 percent in FY18 and company is in line to beat the growth this year.
The products Schott Kaisha makes are used to package injectables and sterile solutions.
“All companies are coming back from regulatory problems, they have been vigorously filing ANDAs. The approvals are granted much quicker by USFDA,” Dadachanji said on reasons leading to growth.
Indian companies are chasing low competition-high margin generic injectable drugs, compared to generic oral solids which tend to become commoditized over a short period of time.
In addition to USFDA approvals, Dadachanji says the growth is also coming from innovative drugs and formulations such as biosimilars, cancer drugs and vaccines. For instance, the move from the oral polio vaccine to inactivated polio vaccines (IPV) that comes in injectable form has created huge demand.“The real growth will start from 2021, hopefully, we are going to hit Rs 1000 crore,” Dadachanji added.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.