Ami Organics Limited today announced that the board of directors of the company has approved the Capex plan of INR 190cr to build a brownfield plant in Ankleshwar, Gujarat, to support the future business growth in the company’s advanced pharmaceutical intermediates segment.
Ami Organics acquired two facilities at Ankleshwar and Jhagadia from the Gujarat Organics on 31st March 2021. The production at the Ankleshwar unit was successfully transferred to the Jhagadia unit during the last quarter for optimum utilisation of resources without losing any revenue. Currently, the old plant at Ankleshwar is being demolished and the new plant will be built on this site.
The Ankleshwarsite has received necessary environmental clearance and the new facility will have ~90 reactors taking the total reactor capacity to 436KL. The plant is expected to start commercial operations from Q4FY24. The Capex will be funded through a mix of General Corporate funds of IPO proceeds, internal accruals, and debt. Currently, the company does not have long-term debt on the books other than a short-term working capital loan.
The current capacity utilisation at the Sachin unit in Surat, Gujarat which manufactures the majority of the pharmaceutical intermediates is at ~65%.