CPHL plans to increase its production capacity for its bestselling API – Paracetamol from 3,600 tons pa to 6,000 tons pa. Paracetamol contributes c.45-50% to total revenue, with utilization levels of over 80% in FY21. Demand for Paracetamol has risen during Covid, and as it may become an endemic, this is likely to sustain.

CPHL is also looking to expand its footprint in the formulations segment, which offers better margins vs. APIs (already bearing fruit with sales contribution rising from 7% in FY20 to 15% in FY22f).

CPHL will also provide contract manufacturing to CCL Pharma (c.2% market share by sales) for their formulations business while setting up a wholly owned subsidiary in Uzbekistan to expand exports.

Courtesy- IMS Research