Bajaj Healthcare Limited (BHL) a leading manufacturer of APIs, Intermediates and Formulations, has been awarded two tenders for manufacture of Concentrated Poppy Straw (CPS) and Alkaloids/Active Pharmaceutical Ingredients (APIs) from unlanced poppy capsules along with straw through CPS-Reg and Opium Gum from the Government of India, Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories, GOI.
The company has received two letters of Award on 12th July, 2022, for the manufacture of Alkaloids/APIs from Government of India, Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories as follows:
1. Letter of Award, to manufacture Alkaloids & APIs from processing of 500 MTof unlanced poppy capsule along with Straw on an annual basis.
2. Letter of Award, to manufacture Alkaloids & APIs from processing of 100 MTof Opium Gum on an annual basis.
The company plans to execute both these tenders at their API manufacturing unit located at Savli, Gujarat, India. The APIs will be manufactured under highly regulated conditions & under strict adherence to protocols prescribed by the Government of India. The unitis well placed to caterto all mandated quality checks and controls, with capacity enhancement capabilities. The tender is expected to bring an overall margin accretion to the company mainly on account of better capacity utilization of the existing plant. The derivate API's and extracts are normally used in a wide range of pharmaceutical applications.
Commenting on the above business updates, Mr. Anil Jain, Joint Managing Director, Bajaj Healthcare said "It is with great pride I would like to announce that BHL has successfully ventured into the highly regulated category of Opiate processing for the Government of India. We have been awarded two tenders for the supply of Opium derived Alkaloids & APIs to the GOI, under long term contracts and expect successive orders under similar tenders, to scale up to processing of ~6,000 MT of Poppy Straw & Opium Gum in the next 5 years.
The Indian Opiates market holds good potential, and the receipt of this order opens the doors to a new business vertical with better margins. This is for the first time in the history of the nation, that the government has deregulated Opiate Processing to a private player and we are extremely honoured to be awarded the very first tender in this segment. The order is a part of our strategy towards building our portfolio of opiates and accessing strong capabilities in this segment.
We have been awarded this order on the back of our strong API manufacturing expertise & infrastructural capabilities. With this order, we plan to establish our footprint in this niche segment of Opiate processing and, with the contribution from our existing, highly skilled workforce; I believe we are well-placed to take the business forward."