Gennex Laboratories is a manufacturer of bulk drugs - the active ingredients that give medicines their effect - operating from a single campus in Telangana that has been expanded block by block to handle more products and larger volumes. The company was built on a multi-product philosophy, using flexible production lines that can switch between different molecules rather than being tied to one drug, which lets it chase demand wherever it appears. That recurring approach - add capacity, add molecules, and stay flexible enough to serve both domestic and export customers from the same plant - explains everything that follows. # Business segments A single manufacturing engine producing bulk drugs and intermediates, with a subsidiary plant in Visakhapatnam adding capacity and regulatory reach - one business, two sites. ## 1. Bulk drug manufacturing: the active ingredients behind finished medicines **Gennex makes the chemical raw materials that pharmaceutical companies turn into tablets, capsules and syrups - it does not sell medicines to patients.** - **Multi-product flexibility is the factory's design** - the Bollaram plant is built as a multipurpose, multi-product facility, meaning the same production blocks and equipment can manufacture different molecules depending on what customers need. That flexibility matters because it lets the company shift output toward products in higher demand without rebuilding the plant. - **The product list keeps growing** - the company's core business has long centred on Guaifenesin and Methocarbamol, two muscle-relaxant-related APIs, but in August 2023 it received regulatory approval to add Fexofenadine HCl (an antihistamine) and Minoxidil (used in hair-loss treatments) to its licence, expanding the range it can legally manufacture and sell from Bollaram. - **Raw materials are overwhelmingly local** - roughly 90% of the raw materials consumed in FY25 were sourced within India, up from 84% in FY23, which reduces exposure to supply-chain disruptions and foreign-exchange swings compared to import-heavy rivals. - **Exports reach a scattered map of markets** - the company sells on an FOB basis to countries including Vietnam, Egypt, Colombia, El Salvador, Mexico and Peru, with no single export geography dominating; trade receivables are typically collected within 90 days. - **Certifications open doors** - the plant holds ISO 9001:2008, ISO 14001 and OSHAS 18000 certifications, which signal to buyers that its quality, environmental and safety systems meet international benchmarks without each customer having to audit the factory from scratch. ## 2. Deccan Remedies: the subsidiary plant built for regulated markets **A 51%-owned subsidiary acquired a ready-made factory in Visakhapatnam's pharma city, giving Gennex a second manufacturing site with licences for more than 40 APIs and a path toward selling into the strictest regulatory markets.** - **Bought, not built from the ground up** - Deccan Remedies acquired a live, running facility from Forel Labs in early 2023, with 90 kilolitres of reactor capacity, 80,000 square feet of constructed space on 2.2 acres, and existing manufacturing licences, so production could begin far faster than a greenfield project would allow. - **The licence portfolio is broad and deliberate** - by July 2025 the plant held a consolidated Form-25 drug licence covering 19 approved products, spanning categories from gastrointestinal drugs (Pantoprazole, Rabeprazole) to cardiovascular agents (Telmisartan, Irbesartan, Clopidogrel), antivirals (Tenofovir, Lamivudine, Fluconazole) and central-nervous-system drugs (Sertraline, Escitalopram, Pregabalin). That breadth means the subsidiary can serve multiple therapeutic categories from one site. - **A test licence signals ambition beyond commercial manufacturing** - in October 2024 the plant received a Form-29 test licence covering 22 additional molecules including Apixaban, Dolutegravir and Posaconazole, which allows it to produce samples for bio-equivalence and clinical studies - the kind of preparatory step a company takes when it intends to file for approvals in regulated markets like the US or Europe. - **Regulatory approvals were secured in sequence** - within months of acquisition, Deccan Remedies obtained consent to operate from the pollution control board, a factory licence in its own name, and the critical Form-25 manufacturing licence, each transfer clearing a legal hurdle that could otherwise have blocked production. - **The parent's products run on the subsidiary's lines too** - the Visakhapatnam licence explicitly includes molecules such as Pantoprazole Sodium and Pregabalin, so the subsidiary can produce part of the parent's existing portfolio alongside its own expanded list, effectively adding capacity for the legacy business while pursuing new products. # Group structure and partners **Gennex controls its subsidiary outright for operational purposes while the promoter group and public shareholders sit alongside each other in a listed structure with a single active manufacturing subsidiary.** - Gennex holds 51% of Deccan Remedies Limited, acquired in March 2023 by buying an additional 6.73% stake from the existing promoters using internal cash, which gave it legal control under the Companies Act and consolidated the Visakhapatnam plant into the group. - The company also holds a small investment in Progressive Effluent Treatment Limited, a shared environmental infrastructure entity, consistent with operating in an industrial estate where waste treatment is pooled. - The board is structured with one executive director - the Chairman and promoter - alongside five non-executive directors, three of whom are independent, while the managing director and a professionally staffed CFO and company secretary run day-to-day operations. - A former whole-time director who resigned in early 2024 for health reasons continues to oversee operations and R&D including new product development, preserving technical continuity at the top of the manufacturing organisation.