Aurobindo Pharma’s Pen-G unit under PLI to begin commercial production in April-June 2024 quarter


Hyderabad: Pharma giant Aurobindo Pharma It is expected that its upcoming Penicillin-G (pen-g) The facility will start in Kakinada, Andhra Pradesh. commercial production In April-June 2024 quarterTop company officials told TOI.
“Production will commence in the first quarter of financial year 2024-25. Currently we are trying to stabilize the processes at the facility,” K Nityanand Reddy, vice-chairman and managing director of Aurobindo Pharma, told TOI here.
The facility with a capacity of 15,000 metric tonnes per annum is being set up at an investment of approximately Rs 2,400 crore under the Centre's production linked incentives (PLI) scheme as part of efforts to make India self-reliant following supply chain disruptions during COVID-19. China has a near-monopoly in Pen-G production.
“The PLI unit should be operational by April-May 2024. We are working very hard to make it faster. Trial production, we will start any time now,” said S Subramanian, chief financial officer of Aurobindo Pharma.
However, Subramanian pointed out that expanding the Penn-G plant to full capacity would be possible only by the second quarter of FY2025.
Aurobindo Pharma CFO also said that the company is also setting up other forward derivatives plants like 6-APA and GCLE for Pen-G. While the 6-APA facility is expected to be operational in Q1FY2025, the GCLE facility will take another year to complete, Subramaniam said.
While about 60% of the production from the Pen-G plant will be for captive use, the company will sell the rest to other players. “About 80-90% of the 15,000 MTPA Pen-G will be sold in the Indian market and the rest will be exported,” Subramanian said.
The investment in the Pen-G facility is part of the Rs 5,000 crore capex the company has spent on setting up around 8-10 new manufacturing facilities in the last 3-4 years and plans to invest Rs 1,000 crore in the next 1 year. There is a plan. -2 years, he said.

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