Alembic Pharmaceuticals Limited, one of India's leading pharmaceutical companies, has made a significant move towards strengthening its manufacturing capabilities by commissioning a new formulations manufacturing facility at Pithampur, District Dhar, Madhya Pradesh. The new unit, effective from 26th April 2025, is part of the company’s broader strategy to expand its production capacities and enhance operational efficiencies.

The announcement was made through an official communication to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) as per the regulations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Highlights of the New Facility

The newly commissioned facility at Pithampur is part of Alembic Pharmaceuticals' ongoing efforts to bolster its manufacturing footprint. The plant is primarily focused on the manufacturing of pharmaceutical formulations, which are crucial for Alembic’s domestic and international business operations.

Investment and Funding:
The total investment made towards setting up the Pithampur facility is approximately Rs. 205 crore. The financing of this facility has been managed through a combination of internal accruals and borrowings, indicating a healthy financial position and strong cash flow management by the company.

Existing and Proposed Capacity:
Alembic Pharmaceuticals already operates multiple manufacturing facilities for formulations, and most of these are optimally utilized. The new Pithampur plant has now been added to the company’s existing manufacturing infrastructure. Since the commissioning is already complete, the company has immediately increased its available production capacity without any delay.

Strategic Rationale Behind the Expansion:
One of the primary reasons for commissioning this new facility is to move third-party manufactured products to in-house production. This move is expected to not only reduce dependency on external manufacturers but also improve cost efficiencies, product quality control, and supply chain reliability. By internalizing the production of more products, Alembic Pharmaceuticals aims to strengthen its market presence and support its expanding portfolio of pharmaceutical offerings.

Impact on Business Operations:
The addition of the new plant is likely to have a positive impact on Alembic’s business operations. With an enhanced manufacturing capacity, the company can cater more effectively to the growing demand in both domestic and international markets. The Pithampur facility will also support Alembic’s ambitions of increasing its export footprint, especially to highly regulated markets like the US, Europe, and emerging economies.

Management's Vision for Growth

The leadership at Alembic Pharmaceuticals has consistently focused on sustainable growth, innovation, and expansion. Over the years, Alembic has made strategic investments not only in R&D but also in manufacturing excellence. The commissioning of the new Pithampur plant aligns with the company’s vision of becoming a global pharmaceutical leader with robust and scalable manufacturing infrastructure.

Internal Communication by the Company:
In the official filing, Alembic Pharmaceuticals reiterated that the commissioning of the Pithampur plant is a major step in their strategy to strengthen manufacturing capabilities. The company emphasized that the investment was made with a clear objective: expansion of business and opportunity to move third-party products to in-house, thus furthering the goal of operational independence and improved margins.

About Alembic Pharmaceuticals Limited

Alembic Pharmaceuticals Limited is a trusted name in the Indian pharmaceutical industry, known for its consistent performance in the manufacturing and marketing of generic formulations and active pharmaceutical ingredients (APIs). Founded over a century ago, Alembic has evolved into a global player with a presence in more than 75 countries.

The company boasts of state-of-the-art manufacturing facilities approved by various regulatory authorities, including the USFDA, MHRA (UK), and TGA (Australia). Its areas of focus include specialty pharmaceuticals, chronic therapies, oncology, and injectables, among others.

Conclusion

The commissioning of the new Pithampur manufacturing facility marks yet another milestone in Alembic Pharmaceuticals' journey of expansion and innovation. With a well-planned investment strategy, strong leadership, and a focus on operational efficiency, Alembic is poised to leverage its enhanced capacity to drive future growth and deliver greater value to its stakeholders.

The strategic move to shift third-party products in-house will not only enhance margins but will also provide Alembic Pharmaceuticals with greater control over its supply chain and product quality. As the company continues to strengthen its infrastructure, it reinforces its position as a leading player in the pharmaceutical industry, both domestically and globally.

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