Aurobindo Pharma China Facility Ready for Commercialization by Q3 FY25

On its Analyst call, Santhanam Subramanian, Chief Financial Officer of Aurobindo Pharma revealed that the company’s new facility in China will initiate production in the upcoming quarter. However, the company expects full-scale output to be realized in the next fiscal year. This phased approach allows for a gradual ramp-up of operations, ensuring that the facility meets production targets and quality standards before reaching its full capacity.

The Hyderabad-based pharmaceutical company plans to commence a small-volume rollout at its China plant during the November-December period. It anticipates ramping up production significantly in the January-March quarter of the following year. This phased approach aims to ensure a smooth transition and gradual scale-up of operations, setting the stage for full commercialization of the plant, according to media reports.

Santhanam Subramanian, Chief Financial Officer, announced that the company's China plant is anticipated to begin commercialization in Q3 FY25. The ramp-up of production is expected to start in Q4 FY25, with full-fledged volume production projected to commence in FY26. Subramanian added that the company is in the process of filing for approvals in both China and the US, which is expected to significantly boost their revenue potential in China in the coming years. However, for the current year, they anticipate only a modest volume and value from these markets. Additionally, he highlighted that the company is progressing well with the large-scale commercialization of Pen-G (penicillin), indicating an important development in their product offerings.

The company’s Rs 2,400 crore Pen-G plant in Andhra Pradesh, approved under the Production-Linked Incentive (PLI) Scheme designed to enhance domestic manufacturing of critical key starting materials (KSMs), drug intermediates, and active pharmaceutical ingredients (APIs), is set to have an annual production capacity of around 15,000 tonnes. This strategic investment aims to strengthen local production capabilities, reduce dependence on imports, and support the country’s pharmaceutical industry by significantly increasing the supply of essential materials.

Aurobindo Pharma, established in 1986, is a pharmaceutical industry pioneer founded by a visionary team led by Mr. P. V. Ramprasad Reddy and Mr. K. Nityananda Reddy. Commencing operations in 1988-89 with a singular focus on Semi-Synthetic Penicillin (SSP) production, the company rapidly ascended to a market leadership position in this segment.

Going public in 1992 and subsequently listing on Indian stock exchanges in 1995, Aurobindo Pharma has solidified its position as a key player in the pharmaceutical landscape. Beyond its flagship SSP business, the company has successfully diversified into high-growth therapeutic areas such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics, gastroenterology, and antibiotics.