Shares of Unichem Laboratories Limited surged as the company announced the successful completion of Phase I of its Active Pharmaceutical Ingredient (API) plant expansion at Pithampur. This strategic move is expected to significantly enhance production capabilities and improve self-reliance in API manufacturing.
In a regulatory filing, Unichem Laboratories stated that it has expanded its API production capacity by 210 KL, adding to its existing 259.5 KL capacity. The current utilization rate of the facility stands at approximately 70%. The company has invested ₹200 crore in this expansion, funded through internal accruals and bank borrowings.
The increased API production will primarily cater to Unichem’s internal requirements, ensuring a stable supply chain for its pharmaceutical formulations. This expansion aligns with the company’s long-term goal of strengthening its API production capabilities and reducing dependence on external suppliers.
On the stock performance front, Unichem Laboratories’ shares surged 2.31% to ₹681.20 as of early trade today, reflecting positive investor sentiment toward the company’s expansion. The stock saw a day’s high of ₹698.00 and a low of ₹671.05. The company’s market capitalization now stands at ₹47.97 billion, reinforcing its position in the pharmaceutical sector.
The completion of Phase I marks a crucial step for Unichem Laboratories’ growth trajectory, and further developments in the expansion project will be closely monitored by investors.
