Leading contract manufacturing drug firm Akums Drugs & Pharmaceuticals plans to expand its presence globally and enhance product range as it looks to more than double its turnover to Rs 10,000 crore by 2028, as per the company's Joint Managing Director Sandeep Jain.
The company, which produces around 12 per cent of all the medicines consumed in the country from its 15 manufacturing facilities, has a topline of about Rs 4,000 crore currently.
In an interaction with PTI, Jain said the company would be able to achieve its stated financial targets even if it continues to grow at the same pace it has been doing over the last few years.
Pharmaceutical products to stay robust
He noted that the demand for pharmaceutical products is going to stay robust in the domestic market, with some estimates pointing towards the market doubling by 2030.
"We expect to touch a turnover of Rs 10,000 crore in the next five years (2028)from the current level of Rs 4,000 crore. Our plan is to keep growing by at least 12-15 (CAGR)," Jain said.
Focus on API vertical and nutraceuticals
The company, which currently has over 1,400 clients across pharma, nutraceutical and FMCG sectors, is now focusing on growing its active pharmaceutical ingredient (API) vertical as well as nutraceuticals, injectables and other product pipeline to fuel the next round of growth.
"We are also looking to scale up the API business. We expect revenues from this stream to go up to Rs 1,000 crore... we could not do much in this segment till now as we were new to it but now we are gearing up to do well in the space as well," Jain said.
Expand globally
Besides, the company is looking to cater to more clients in overseas markets, including Europe, over the next few years.
"We are looking at enhancing exports. Earlier we did not focus on it..so we think that with enhanced focus we should be able to garner around Rs 2,000 core revenue from the vertical in future. By 2028, it should definitely touch Rs 1,200 crore," Jain said.
In order to grow its business globally, the company has also initiated the process to go public in order to bring in additional capital to fund facilities and products to cater to highly regulated markets of the US and Europe.
"We are clear that we want to go public...exact timelines will be shared in due course... the process is going to start soon...," Akums Drugs & Pharmaceuticals Director Arushi Jain stated.
The company plans to utilise the existing client base, who already have presence abroad, to expand its footprint in international markets, she said.
The company would also not shy away from forming independent tie-ups in the overseas markets, she added.
On a query related to Akums' recent bid for government-owned HLL Lifecare, Sandeep Jain said: "We bid because we thought HLL would be a good acquisition. I think it is on hold right now...if it opens again then definitely we will like to participate in the same."
Akums produces oral solid dosage forms, oral liquid dosage forms, injectables, hormonal medications, ointments and cosmetics, ayurvedic medicines, food supplements and nutraceuticals, among others.
The company employs over 14,000 people with the majority of its plants located in Haridwar (Uttarakhand).
