FDC Limited, a prominent player in India’s pharmaceutical industry, has announced a significant expansion plan for its Liquid Oral facility at the Sinnar Plant. The proposal, approved by the Board of Directors on April 30, 2025, reflects the company’s forward-looking strategy aimed at enhancing production capacity, improving supply capabilities, and catering to growing domestic and international demand.

The Board meeting, which commenced at 11:00 A.M. and concluded at 01:55 P.M., resulted in a strategic decision to move forward with the capacity expansion project. This major expansion is part of FDC’s long-term vision to remain competitive in the pharmaceutical market by strengthening its manufacturing infrastructure.

Details of the Expansion Project:

The disclosure, made in accordance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, and the SEBI Circular dated July 13, 2023, outlines the following specifics regarding the expansion:

• Existing Capacity:
  The company currently operates across multiple dosage forms, with capacity varying dynamically depending on the product mix. This flexibility enables FDC to optimize production based on market needs.

• Current Utilization:
  The average capacity utilization of the company’s manufacturing facilities stands between 70% and 80%, indicating efficient use of existing infrastructure and room for strategic scaling.

• Proposed Capacity:
  The new facility at the Sinnar plant is planned to add 77,000 kilolitres per annum, significantly increasing FDC’s ability to manufacture liquid oral formulations.

• Timeline for Completion:
  The new capacity is expected to be fully operational within 18 to 24 months, reflecting a medium-term expansion horizon with a focus on timely execution.

• Investment Requirement:
  The total estimated investment for the project is approximately INR 140 crores. This substantial financial commitment underscores the company’s confidence in the market potential of its expanded operations.

• Mode of Financing:
  The entire expansion will be funded through internal accruals, showcasing FDC’s strong financial position and self-sufficiency in supporting large-scale capital expenditures.

• Rationale for Expansion:
  The decision to expand the Sinnar facility stems from the company’s objective of sustaining growth, meeting rising demand, and exceeding customer expectations. The pharmaceutical market in India and abroad is evolving rapidly, and this move positions FDC to respond more effectively to emerging trends and increasing volumes.

Strategic Implications:

This expansion initiative is aligned with FDC’s overarching mission to provide high-quality pharmaceutical products and maintain its leadership in therapeutic segments such as anti-infectives, gastrointestinal, ophthalmics, and oral rehydration solutions. The Sinnar facility, known for its compliance with global manufacturing standards, will benefit from the upgraded infrastructure and enhanced capacity.

The announcement also reflects FDC’s proactive management approach in identifying capacity constraints and addressing them before they become bottlenecks. As the demand for liquid oral formulations continues to rise, especially in paediatric and geriatric care segments, the expansion ensures FDC’s readiness to scale and serve new and existing markets.

Operational and Financial Stability:

FDC’s decision to utilize internal accruals for funding the expansion is notable. It not only preserves shareholder equity but also highlights the company’s robust financial health. By avoiding external debt, FDC ensures that the project will proceed without impacting its balance sheet leverage or operational flexibility.

The 18 to 24-month implementation timeline will allow the company to manage resources efficiently, maintain existing production schedules, and ensure that the transition to enhanced capacity is smooth and synchronized with ongoing market strategies.

Regulatory Compliance and Transparency:

The announcement follows the regulatory norms set by the Securities and Exchange Board of India (SEBI) and reinforces FDC’s commitment to transparent and timely disclosures. The company has complied with Schedule III of the SEBI LODR Regulations and the relevant SEBI Circular, thereby ensuring stakeholders are kept fully informed about material decisions that affect the company’s future.

Conclusion:

The expansion of the Liquid Oral facility at FDC’s Sinnar plant represents a key milestone in the company’s growth strategy. With a capital investment of INR 140 crores, targeted completion within two years, and funding through internal accruals, the company is positioning itself for greater production capabilities, enhanced market reach, and long-term value creation.

This development signifies FDC’s commitment to operational excellence, customer satisfaction, and sustainable growth. Stakeholders, including investors, partners, and customers, can expect continued innovation and responsiveness from the company as it scales its infrastructure to meet future healthcare demands.

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