NGL Fine-Chem Limited, manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health, is planning Rs. 160 crore greenfield expansion at Tarapur to be funded through debt and internal accrual. 

The 50% capacity expansion with sufficient capacity will meet demand for new products in the pipeline. Presently, the civil construction is undergoing and the company has already invested Rs. 52.57 crores till Q1 FY25. 

The company has completed brownfield expansion in subsidiary Macrotech and even commercial production has started. 

"Our capital expenditure (Capex) plans remain on schedule, with Phase 1 expected to be completed by the fourth quarter of the current financial year. Additionally, we are on track to complete Phase 2 by the third quarter of the next financial year. While we remain cautiously optimistic, we acknowledge the challenging operating environment in the short term," says Rahul Nachane, Managing Director, NGL Fine-Chem Limited. 

"I am pleased to present our performance for Q1 FY25. The sales have grown on a YoY basis from Rs. 71.04 crores to Rs. 90.75 crores representing a growth of 27% reflecting robust demand growth. Whereas on a QoQ basis the sales has declined 9% primarily due to two primary factors: increased competition leading to reduced realisations and the traditionally slower sales period following the high sales volume in Q4. Increased competition and higher supply capacities have maintained the pressure on pricing resulting in lower per unit realizations," commented Nachane. 

"Consequently the EBITDA margins and overall profitability for the quarter has been subdued. We are seeing the pricing pressure persist into Q2 FY25 but expect the conditions to improve as the year progresses. Although some product realisations have begun to recover, pricing pressure remains on others. We continue to face challenges with elevated logistics costs, particularly affecting our exports t o the LATAM and European regions, and have observed a slow down in container movement. On the currency front, while challenges persist in Egypt and Africa, the situation in Turkey appears to be improving," added Nachane. 

The company has three manufacturing facilities located at Tarapur and Navi Mumbai, Maharashtra, designed to meet the requirements of regulatory agencies and are capable of a wide range of reaction capabilities.