Granules India outlines ₹2,000 crore organic capex over three to four years

What happened

• The company plans ₹2,000 crore of organic capex over three to four years, according to Sahi and Whalesbook.
• The plan rests on four areas: controlled substances, complex generics, oncology and peptide CDMO services.
• For peptide CDMO, it targets a $50 million revenue run rate in three years and over $100 million in five years.
• Whalesbook reports gross margins have risen 15 percentage points to 65% over four years, and that the company has a net cash position.

Why it matters

Good to know: A CDMO is a contract development and manufacturing organisation, a company that develops and makes drugs for other drug companies. Capex is money spent on plants, equipment and facilities.

Key facts

Planned organic capex

₹2,000 crore over 3 to 4 years

Peptide CDMO target

$50 million run rate in 3 years; over $100 million in 5 years

Gross margin (as reported)

65%, up 15 percentage points in four years

Read the source

• Granules India Targets ₹2,000 Crore Organic CAPEX And $100 Million Peptide RevenueSahi
• Granules India Outlines Granules 2.0 Strategy with 2,000 Crore Capex PlanWhalesbook