Bajaj Healthcare Ltd commences trial runs of Opium Processing Business for the Government of India

Bajaj Healthcare Limited (BHL), a leading manufacturer of APIs, Intermediates and Formulations, has announced the inauguration of new production line for Processing of Opium at Savli, Gujarat, India and commenced the trial run for the same.

- BHL had 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 MT of unlanced poppy capsule along with Straw on an annual basis.

2. Letter of Award, to manufacture Alkaloids & APIs from processing of 100 MT of Opium Gum on an annual basis.

- BHL has inaugurated the new production line and commenced the trial operations for Opium Processing/API's under highly regulated conditions & under strict adherence to protocols prescribed by the Government of India.

- The new production line is equipped with the latest advanced manufacturing system to produce quality products of Alkaloids & APIs used in a wide range of pharmaceutical applications.

- The new production line was inaugurated in a ceremony in Savli, Gujarat attended by Mr. Rajnath Singh - Chemical Examiner of Government of India, Opium Processing Plant, Neemuch.

Commenting on the above business update, Mr. Anil Jain, Joint Managing Director, Bajaj Healthcare said: "It is with great pride that I announce the successful inauguration and commencement of trial run for the manufacture of Alkaloids/ APIs at our unit in Savli, Gujarat. The commencement of this new production line marks another important milestone for our commitment to growing our business. This facility positions BHL to be a trusted manufacturing / processing partner for Government of India (GOI), seeking to not only improve their operations, but also to meet their demand for manufacture of Alkaloids/APIs.

This is a very highly regulated segment and we have carried out the trial runs for the same whilst taking due care of all the regulations and protocols, as prescribed by the Government of India. We expect this segment to contribute INR 250Mn to 300Mn by FY25.

We estimate the commercial operations to commence in Q3 FY23 and further anticipate successive orders under similar tenders, to scale up to processing of ~6,000 MT of Poppy Straw & Opium Gum in the next 5 years.

We have been awarded this order on the back of our strong API manufacturing expertise & infrastructural capabilities. With this manufacturing, 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."

Source : Equity Bulls

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