SMS Pharmaceuticals, a Hyderabad based company specializing in active pharmaceutical ingredients (API) and intermediates, plans to invest approximately ₹150 crore in FY25. The capital expenditure is primarily focused on backward integration and the development of new product lines.
The objective of this investment is to enhance production capabilities, introduce new products, optimize costs, improve operational efficiencies, and capitalize on growth in various product segments.
The company’s R&D initiatives are concentrated on developing products in high-demand therapeutic areas, ensuring a robust pipeline for future growth. The funding for this capital expenditure will come from a mix of internal accruals, a term loan, and proceeds from a recent equity warrant issue totalling ₹114.3 crore.
As reported by Projects Today, in FY24, SMS Pharmaceuticals experienced significant growth across all product segments. Strategic diversification and backward integration have played a crucial role in maintaining stability within its product portfolio. The antiretroviral (ARV) segment contributed around twenty percent to the company’s revenue for the year, positioning the company to meet future demand in this area.
