### **Overview** Shree Ganesh Remedies Limited (SGRL), headquartered in Ankleshwar, Gujarat, is a rapidly growing Indian Contract Development and Manufacturing Organization (CDMO) and Contract Manufacturing Organization (CMO). Founded in 2004 (originally incorporated as a private entity in 1995), SGRL specializes in the research, development, and manufacturing of **pharmaceutical intermediates, fine chemicals, and specialty chemicals**. The company serves over 100 global clients across more than 30 countries, including leading pharmaceutical, agrochemical, polymer, and electronics firms. SGRL transitioned from the BSE SME platform to the main BSE board in November 2020 and has since pursued a clear strategic trajectory focused on **technology-driven innovation, value-chain upgradation, and long-term global partnerships**. --- ### **Business Evolution & Strategic Pivot** - **Original Focus (Since 2004):** Manufacturing intermediates for off-patent and generic drugs, historically contributing over 90% of revenue. - **Current Shift (Post-2010):** A deliberate pivot toward **high-value specialty and fine chemicals**, particularly patented, innovative, and customer-specific molecules. - **Revenue Transition:** The legacy intermediates segment now accounts for **less than 60%** of revenue, with the **specialty and fine chemicals segment expected to contribute over 60%** in the coming years. - **Scale Growth:** Project sizes have expanded significantly—from 20–50 tonnes/year in earlier years to current inquiries exceeding **500 tonnes/year**, reflecting growing client confidence and large-scale demand. This transition is supported by **robust regulatory infrastructure**, developed through collaborations with top European pharmaceutical companies, enabling **rapid scale-up and global compliance**. --- ### **Core Capabilities & Technological Expertise** SGRL has established a strong technical moat through mastery of complex chemical processes and advanced reaction technologies: #### **Key Chemistry Expertise:** - **Halogenation:** Chlorination, bromination, iodination using UV light and diverse reagents. - **Reduction Reactions:** Catalytic hydrogenation (up to 40 bar), use of Ra-Ni, Pt/C, Pd/C, hydride salts (e.g., Vitride, DIBAL). - **Carbon-Carbon Bond Formation:** Friedel-Crafts, Grignard, Mg/AlkMgX, Pd-catalyzed coupling (Suzuki, Heck). - **Advanced Syntheses:** Heterocycle synthesis, nitration, chiral resolution, esterification, dehalogenation, Diels-Alder, hydrolysis, oxime formation. - **Oxidation:** Using TEMPO, NaOCl, metal catalysts (Fe, Cu, Co, Cr). - **Low-Temperature Chemistry:** Cryogenic reactions (down to -45°C), metalorganic reactions, cryo-quenching. - **High-Pressure & Extreme Condition Processes:** Reactions up to 100 bar; operations from **-40°C to +300°C**. - **Sustainable Technologies:** Photo-catalytic reactions (light-driven synthesis), flow chemistry, thin-film and high-fraction distillation. #### **Niche Leadership:** - Among India’s few players with **in-house high-pressure manufacturing capabilities (up to 600 psi)**. - **Global leadership in thionyl chloride-based derivatives**, benefiting from backward integration and cost-efficient production. - Expertise in **chloroalkyl amine HCl salts, cyclopropane/cyclobutane derivatives, carboxylic acids/acid chlorides, furfural derivatives, and aromatic esters**. --- ### **Manufacturing & Infrastructure Expansion** SGRL operates two manufacturing units at its **Ankleshwar site (GIDC)** and is developing a new facility at **Dahej, Gujarat**. #### **Ankleshwar Site:** - **Total Area:** Expanded to **36,500 sq. mtrs** (after acquiring 20,100 sq. mtrs in 2023). - **Production Blocks:** - **Unit 1:** 7 functional blocks, with **Block 8 commissioned in FY24** (₹15 crore CAPEX) and **Block 7 under construction**, slated for H1 FY27. - **Unit 2:** 2 functional blocks. - **Future Blocks:** 9, 10, and 11 are planned. - **Installed Capacity:** Over **230 kL reactor volume**; production capacity expanded from 150 MT to **600 MT**, with plans to scale to **2,000 MT** at Dahej. - **Certifications:** ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, GMP, EcoVadis Bronze, Halal. #### **Dahej Expansion:** - New **Dahej-II Industrial Estate** facility under development to increase annual capacity to 2,000 MT (CAPEX: ₹6,280.57 lakhs). - Funded via **Axis Bank loan (₹4,000 lakhs), internal accruals, and public issue proceeds**. - Strategically located to support **large-scale CRAMS projects** and benefit from Gujarat’s chemical manufacturing ecosystem. #### **Pilot Plant & R&D Center:** - **State-of-the-art Pilot Plant:** - Critical for **R&D–commercial bridge**, enabling process simulation, faster scale-up, and tech transfer. - Reactors (20–200 L) operate under extreme conditions (up to 100 bar, -45°C to +300°C). - Functions as a **commercial site for niche, high-value, low-volume products**. - **New automated pilot plant** with **flow chemistry capabilities** to be commissioned in **Q4 FY26**. - **R&D Infrastructure:** - DSIR-recognized, **10,000 sq. ft. facility** with **18 fume hoods** and **10 chemical reaction technologies**. - Focus on **custom synthesis, process optimization, and innovation** in areas like gene therapies and personalized medicine. - Average R&D spend: **~3.4% of revenue**. - Dedicated **R&D block** under construction to expand innovation capacity. --- ### **Market Positioning & Customer Strategy** #### **Global CRAMS Leader:** - SGRL has evolved from a third-tier to **second-tier supplier** for key European clients in medium-sized projects. - Recognized as a **preferred custom synthesis partner from India**, especially for complex molecules. #### **Strategic Projects & Contracts (Nov 2025):** - Secured **approval from a European client** for a new agrochemical project; commercial supply expected by **Q4 FY27**. - Won a **major contract with a leading European pharmaceutical firm**. - Progressing on a **specialty chemical project with a Japanese client**, with final approval expected by **mid-2026**. - Signed **Long-Term Strategic Supply Agreement (SSA)** with a leading **Japanese company (Jan 2025)** to manufacture **three first-of-their-kind specialty chemicals** in India. - **MoU signed with Japanese client (May 2025)** for specialty chemicals; commercial supply expected in 2025. #### **Geographic Reach:** - **Exports:** Over **80% of total sales** (as of Aug 2023: ₹618.6 million export revenue vs. ₹283.6 million domestic). - **Export Markets:** USA, Canada, UK, France, Germany, Japan, South Korea, China, Israel, Australia, and others across 30+ countries. - **New Subsidiary:** **SGRL USA Inc.** incorporated in August 2023 to strengthen North American market presence. --- ### **Product Portfolio & End-Market Diversification** SGRL’s diversified product base reduces dependency on any single sector: 1. **Human Health API Intermediates:** Therapeutics for **antipsychotic, antidepressant, oncology, diabetes, cardiovascular** drugs (e.g., amitriptyline, haloperidol, raloxifene). 2. **Veterinary API Intermediates:** Feed additives, antiparasitics, anti-inflammatories. 3. **Specialty & Fine Chemicals:** Serving: - **Agrochemicals:** Rising demand due to shrinking arable land and crop protection needs. - **Electronics:** Wet chemicals, silicon wafers, PCB laminates—poised to benefit from **India’s semiconductor push** under 'Make in India'. - **Polymers, Aroma, Flavors, Coatings, Food Additives**. The company holds **50%+ market share in four products**, underscoring **niche leadership** in select segments. --- ### **Financial & Operational Highlights** - **Profitability:** Near-term margin normalization due to **ramp-up of Block 8** (higher depreciation and finance costs), but future EBITDA expected to improve with capacity utilization (target: **50–60% by FY25-end**). - **FY26 Focus:** Year of **consolidation, capability building, and capital optimization**. - **R&D & Innovation:** Central to SGRL’s model—**focus on molecules in clinical trials or near-patent expiry**, enabling early-to-market advantage. - **Top 5 Customers:** Accounted for ~67% of FY21 revenue; **long-term relationships** (average 5+ years), reducing churn risk. - **Supply Chain Resilience:** Proven ability to secure raw materials amid global disruptions. --- ### **Leadership & Governance** - **Promoter-Driven Management:** - **Chandu Kothia:** Founding Promoter & Managing Director. - **Gunjan Kothia:** Driving commercial and technological strategy. - **Parth Kothia:** Overseeing financial and corporate strategy. - Leadership combines **pharma, chemical engineering, global finance, and regulatory expertise**.