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Piramal Pharma allocates Rs 330 crore towards capex H2FY24

Piramal Pharma

Piramal Pharma Limited plans to invest around Rs 330 crore in capital expenditure in H2FY24, with the goal of commercializing the pipeline in the hospital generics business over the next five years, according to Chairperson Nandini Piramal.

While the company has launched over 100 new products in the India consumer healthcare business in the last three years, along with strong growth in e-commerce, Piramal Pharma expects to reach Rs 1000 crore in this segment this year, reinforcing PPL’s goal of consistent sustainable growth.

According to the company’s annual report, FY2023 was a difficult year characterized by rising interest rates, geopolitical uncertainty, post-pandemic demand-supply volatility, and significant increases in energy prices. External factors had a significant impact on Piramal Pharma’s financial performance. Throughout the year, the company’s revenue from operations increased by 8% year on year, reaching Rs 7,082 crore.

“After a challenging FY22 and FY23, the current fiscal year is about business recovery and turnaround.” Piramal Pharma Limited’s revenue from operations increased by 14% in the first half of fiscal year 24. “The company is concentrating on organic growth, cost control, and operational excellence,” Piramal explained.

Piramal Pharma

PPL operates in three business segments: Contract Development and Manufacturing Organization (CDMO), Complex Hospital Generics (CHG), and India Consumer Healthcare (ICH). It has a commercial presence in over 100 countries, including regulated markets in the United States, Europe, and Japan. With 17 development and manufacturing facilities spread across India, the United Kingdom, and North America, the company provides customers with market proximity and a cost-effective production cycle.

According to the annual report, the CDMO business increased by 7% year on year, while the CHG and ICH businesses increased by 14% and 6%, respectively. YoY growth in the company’s ICH business was 16% on a like-to-like basis.

According to Piramal, the company is experiencing strong underlying demand for its integrated CDMO services, particularly in the niche capability areas of high potent APIs, antibody drug conjugates, peptides, sterile injectables, and hormonal products.

Piramal went on to say that PPL’s sustainability goals are just as important as her business goals. These include cutting Scope 1 and 2 emissions by 42% from the baseline in 2022 by 2030, reducing freshwater consumption, and recycling and reusing wastewater.