Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessCompanies

Pharma packaging firm Schott Kaisha rides on Indian drug companies' injectables push

The company which has two plants in Daman and Jambusar near Vadodara, and plans to add new manufacturing facilities in Daman and Baddi.

March 16, 2019 / 10:24 AM IST

Schott Kaisha, the Indo-German joint venture that makes tubular ampoules, vials, glass syringes and cartridges used in pharmaceuticals and cosmetics is investing over Rs 500 crore to set up new facilities and expand existing ones.

The expansion is driven by demand from Indian drug makers that are increasingly launching injectable drugs domestically and overseas.

The company has two plants in Daman and Jambusar near Vadodara and plans to add new facilities in Daman and Baddi.

The company said it plans to start work on a new facility in Daman by end of this year and the Baddi facility in the next few months.

The company said the Baddi facility is meant to be closer to the North Indian market, where Chinese manufacturers are holding sway.

The company, which has invested Rs 250 crore on Jambusar site, said nine lines are under production and nine more will come under production by end of this year.

The company is investing a couple of million euros on each line at the Jambusar unit.

It is also in the process of modernising and consolidating its existing facility in Daman.

“We are seeing an exponential growth after a slowdown two-three years back,” said Rishad Dadachanji, Managing Director of Kaisha Lifesciences in an interview to Moneycontrol.

Schott Kaisha's revenue grew 38 percent in FY18 and company is in line to beat the growth this year.

The products Schott Kaisha makes are used to package injectables and sterile solutions.

“All companies are coming back from regulatory problems, they have been vigorously filing ANDAs. The approvals are granted much quicker by USFDA,” Dadachanji said on reasons leading to growth.

Indian companies are chasing low competition-high margin generic injectable drugs, compared to generic oral solids which tend to become commoditized over a short period of time.

In addition to USFDA approvals, Dadachanji says the growth is also coming from innovative drugs and formulations such as biosimilars, cancer drugs and vaccines. For instance, the move from the oral polio vaccine to inactivated polio vaccines (IPV) that comes in injectable form has created huge demand.

“The real growth will start from 2021, hopefully, we are going to hit Rs 1000 crore,” Dadachanji added.

Viswanath Pilla
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Mar 15, 2019 09:20 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347