Hyderabad: Pune-based Cilicant Chem, which is into bulk drugs, formulations and processed food packaging, is planning to set up a packaging unit in Hyderabad in the next 2-3 years, besides establishing its sales team in the city in the coming months.
The company plans to invest over Rs 50 crore in the unit. The facility will make packaging for both pharma and processed food. Cilicant finds Shamshabad to be one of the ideal sites for the manufacturing facility. There will be an associated warehousing unit as well.
The company is currently in the process of setting up its third unit in Pune with an investment of Rs 25 crore, which will be operational by April this year. It operates two units in Pune already, cumulatively investing Rs 12 crores. The company has a cumulative production capacity of 200 tonnes per year, with plans to take this number to 1,000 tonnes per year with addition of new units.
The company, which earns 95 per cent of its revenues through pharma packaging is aiming for Rs 200 crore revenues by FY25, from Rs 50 crore this fiscal. The company is looking to raise funds through private equity investors to meet its expansion including setting up of Hyderabad unit.
Cilicant Chem MD Manish Jain told Telangana Today, “We will be investing Rs 50 crore in a green-field unit in Hyderabad. The city is a major hub for both bulk drugs and formulations. We generate currently over Rs 20 crore from this market. While Hyderabad and Ahmedabad are the two largest pharma hubs, the former has shown faster growth on all fronts of pharma.”
“Barring injectables, we are into the entire range of formulation packaging besides catering to the bulk drugs. We source raw material primarily from DuPont. We are also developing other packaging products for various categories. Our plants are compliant with cGMP (current good manufacturing practices) and USFDA compliance norms. We have also invested significantly on clean rooms to maintain quality,” he added.