Lasa Supergenerics Receives Environmental Clearance for Benzimidazole Derivatives Capacity Expansion in Unit 2 Located at Khed

Lasa Supergenerics Limited (Lasa), India's leading API manufacturer, announced that it has received the 'environmental clearance' from the State Environment Impact Assessment Authority (SEIAA) for expanding its 'benzimidazole derivatives' capacity at the company's manufacturing facility at Khed, Maharashtra.

The proposed expansion will require only a de-bottlenecking capex as the company already has the necessary infrastructure and machinery in place and was awaiting environmental clearance to operationalize the assets.

Post the successful de-bottlenecking, the company's volumetric capacity will increase by 2,500 TPA (rated capacity by 650 TPA) taking the company's total volumetric capacity to 6,800 TPA (total rated capacity of 2,500 TPA). The expanded capacity will be used to manufacture the benzimidazole derivatives (such as Albendazole, Fenbendazole and others) of which Lasa is one of the prominent suppliers. The enhanced capacity is expected to be commissioned in Q3 FY21 and likely to contribute to the top-line from Q4 FY21 onwards.

Commenting on this development, Dr. Omkar Herlekar, Chairman & Managing Director, Lasa Supergenerics said "Receiving the Environmental Clearance for capacity expansion is a significant milestone for fulfilling Lasa's expansion plans. Now, we will be able to increase our manufacturing capacity from existing 4,300 TPA to 6,800 TPA post the successful commissioning of the proposed expansion at our state-of-the-art WHO-GMP certified API manufacturing facility in Khed, Maharashtra.

Furthermore, as we already have the necessary infrastructure & machinery in place, the proposed expansion will require only a de-bottlenecking capex of approximately INR 3 crores. The expanded capacity is expected to be commissioned in Q3 FY21 and likely to start contributing to the overall revenue from Q4 FY21 onwards. The enhanced capacity at peak utilization can potentially generate sizeable incremental revenue.

Shares of Lasa Supergenerics Ltd was last trading in BSE at Rs.74.45 as compared to the previous close of Rs. 69.05. The total number of shares traded during the day was 55967 in over 1064 trades.

The stock hit an intraday high of Rs. 75.95 and intraday low of 69.95. The net turnover during the day was Rs. 4188872.

Source : Equity Bulls

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