Aarti Industries to invest Rs 100 cr in FY14 on expansion
New Delhi: Chemicals and pharma manufacturer Aarti Industries plans to invest around Rs 100 crore in 2013-14 to set up new plants for its different business divisions apart from augmenting its existing capacities.
The company, which is present in various segments including agrochemicals and active phat ingredients (API), is also looking to increase its revenues from pharma exports in the next two years.
"We plan to invest Rs 100 crore in 2013-14 on various business verticals like pharma, agrochemicals and performance chemicals," Aarti Industries Chairman and Managing Director Rajendra Gogri said.
The investment would go into putting up new facilities as well as augmenting the existing capacities, across the business verticals, he added without sharing details.
Aarti Industries has 16 manufacturing facilities across Gujarat and Maharashtra, out of which four plants produce API's and intermediaries for the pharmaceutical sector.
When asked how the company plans to fund the investment, Gogri said: "It would be done through internal accruals and partly through debt."
The company had posted revenues of over Rs 160 crore from pharma ingredient sales in FY12 and it aims to increase the revenue from the vertical in the next two years.
"We are targeting sales of around Rs 250 crore from pharma vertical in the next two years," Gogri said adding that the company expects to grow over 20 percent over the next two years.
In the last fiscal, the company had reported revenues of Rs 1,700 crore.
"We expect our pharma exports to the US and Europe to increase further as we are developing these markets for the last couple of years. Also, we are increasing the capacity of our USFDA approved plants," Gogri said.
Currently, the company exports over 50 percent of its total pharma ingredient production, he added.
The Mumbai-based firm's two facilities are US Food and Drug Administration compliant, while the other two supply to other markets.
The company, which is amongst the largest producers of benzene-based basic and intermediate chemicals in the country, also supplies APIs to various home grown pharma companies including Ranbaxy, Cipla and Dr Reddy's Laboratories.