Sigachi Industries Limited on Friday announced that it has secured the Terms of Reference (ToR) approval from the State Environment Impact Assessment Authority (SEIAA), Andhra Pradesh.
This crucial approval is for its upcoming manufacturing facility dedicated to Bulk Drugs, Drug Intermediates, and Specialty Chemicals, including Active Pharmaceutical Ingredients (APIs), to be established at Orvakal in Kurnool District, Andhra Pradesh.
Shares of the company were trading higher at Rs 57.55 per share on the NSE.
| Particulars | Details |
|---|---|
| Approval Received | Terms of Reference (ToR) |
| Approving Authority | State Environment Impact Assessment Authority (SEIAA), Andhra Pradesh |
| Facility Type | Bulk Drugs, Drug Intermediates, Specialty Chemicals, API |
| Location | Plot No. A-10, Guttapadu-Orvakal Node, Orvakal, Kurnool District, Andhra Pradesh |
| Project Area | 25.09 acres |
| Regulatory Category | Category B1, Schedule 5(f) of EIA Notification, 2006 (Synthetic Organic Chemicals) |
| Environmental Clearance (EC) Process Commencement | July 15, 2025 |
| Project Development Activities Start | August 1, 2025 |
Key Approval for Strategic Expansion
The receipt of the Terms of Reference (ToR) is a significant step in the regulatory pathway for establishing the new manufacturing unit. This approval, granted by the SEIAA of Andhra Pradesh, allows Sigachi Industries to proceed with the next stages of environmental clearances for its proposed facility. The plant is slated to produce a range of Bulk Drugs, Drug Intermediates, and Specialty Chemicals, with a strong focus on Active Pharmaceutical Ingredients (APIs), which are critical components in pharmaceutical formulations.
The company has identified a 25.09-acre plot (Plot No. A-10) in the Guttapadu-Orvakal Node within Kurnool District for this strategic project. According to the company's statement, the facility falls under Category B1 and is aligned with Schedule 5(f) of the Environmental Impact Assessment (EIA) Notification, 2006, which pertains to the Synthetic Organic Chemicals sector. This classification dictates the scope and rigor of the environmental assessment studies required.
Project Timeline and Development Path
With the ToR now secured, Sigachi Industries has outlined a clear timeline for the subsequent phases of the project. The Environmental Clearance (EC) process, a critical regulatory hurdle, is scheduled to commence from July 15, 2025. Following the necessary environmental approvals, the company plans to initiate project development activities on the ground from August 1, 2025. This structured approach indicates the company's preparedness to move forward swiftly with the establishment of the Orvakal facility.
Strategic Importance and Company Vision
The proposed Orvakal facility is integral to Sigachi Industries' long-term strategic vision. The company highlighted that the project will be instrumental in several key areas:
- Enhancing API Manufacturing Capacity and Global Reach: The new unit is expected to substantially augment Sigachi's capacity for API production, enabling it to cater to a larger share of the global pharmaceutical market. This aligns with its goal of becoming a more vertically integrated entity.
- Supporting Pipeline Expansion: The facility will play a crucial role in expanding the company’s product pipeline, targeting both highly regulated markets (such as the US and Europe) and semi-regulated markets, thereby diversifying its geographical and product risks.
- Establishing a Strategically Located Facility with Export Potential: The choice of Orvakal in Andhra Pradesh is strategic, with the company emphasizing its potential for exports. This suggests logistical advantages for serving international clients efficiently.
- Contributing to “Make in India” Initiative: Sigachi stated that the project supports the Indian government's “Make in India” campaign by developing world-class manufacturing infrastructure and adhering to sustainable operational practices.
This development is a cornerstone of Sigachi's strategy to strengthen its position in the pharmaceutical value chain, particularly in the high-growth API and specialty chemicals segments.
Management Commentary on the Milestone
Mr. Amit Raj Sinha, Managing Director and CEO of Sigachi Industries Limited, commented on the development, stating, "This is a significant milestone in our journey to become a vertically integrated pharmaceutical manufacturing company. The Orvakal project will anchor our next phase of growth in APIs and specialty chemicals, helping us create scalable, sustainable, and compliant operations for global markets."
He further added, "At Sigachi, we are strategically positioning ourselves to cater to increasing global demand by building capacity closer to key markets and regulatory jurisdictions. The new facility will not only strengthen our product supply chain but also enable faster commercialization, seamless tech transfers, and enhanced responsiveness to evolving customer requirements.”
Mr. Sinha's statement underscores the project's importance in enhancing operational efficiencies, market responsiveness, and overall growth trajectory of the company in the competitive global pharmaceutical landscape.
