Vasundhara Rasayans is a specialised manufacturer of antacid ingredients - the white powders and gels that go into the chewable tablets and liquid syrups lining pharmacy shelves. Incorporated in 1987 and listed since 2011, the company entered the antacid API (Active Pharmaceutical Ingredient) business in 1990 and has spent three decades refining a single, focused craft: making a family of closely related aluminium and magnesium compounds, then customising their physical form and purity to solve specific customer problems across pharmaceuticals, food and industrial chemicals. The recurring approach is to offer the full basket of antacid raw materials under one roof, backed by technical hand-holding, so that a formulator buying a combination drug does not need to stitch together multiple suppliers. # Business segments Two engines built on the same manufacturing backbone - a core antacid API franchise that has been running since 1990, and a small solar-module sideline that shares the factory floor. ## 1. Antacid APIs: the company's reason for being **It makes the essential raw materials for antacid medicines - aluminium and magnesium compounds in paste, powder and micronised powder - and sells them to pharmaceutical, food and chemical companies worldwide, with technical support baked into every relationship.** - **A full basket from one roof** - antacid drugs are almost always combinations of two or more active ingredients, so the company manufactures the entire set: Aluminium Hydroxide Gel, Magnesium Hydroxide, Magaldrate, Magnesium Trisilicate, Magnesium Silicate and Aluminium Phosphate, with an annual capacity of about 1,500 metric tonnes of powder or equivalent. A customer making a combination antacid can source every API from a single supplier, which simplifies procurement and quality assurance. - **Form is the differentiator** - the company offers its products in paste, powder and micronised-grade powder, the last of which replaces conventional paste in liquid antacid formulations and is positioned as a product-form innovation. This means the company competes not just on chemical purity but on the physical engineering of the particle, tailoring how the ingredient behaves in the customer's factory. - **Beyond the pharmacy aisle** - roughly a third of the product line serves non-pharmaceutical applications: a low-heavy-metal grade of Aluminium Hydroxide Gel developed for lake colours (pigments used in food and cosmetics), plus Aluminium Hydroxide Amorphous, Aluminium Sulphate and Poly Aluminium Chloride for water treatment and Friedel-Crafts reactions in industrial chemistry. The same reaction vessels produce ingredients for antacid syrups and for cleaning wastewater, spreading the fixed-cost base across unrelated end markets. - **Technical backup, not just delivery** - the company positions itself as a provider of technical and logistic support, absorbing and adapting technologies continuously to customise products for specific customer and application needs. It does not run a formal R&D lab with measurable expenditure, so the customisation is process-level tweaking on the shop floor rather than new-molecule discovery. - **Export-led with a Russian foothold** - foreign exchange earned during FY25 was about Rs. 15.8 crore, and the company has built a presence in Russia, where business has progressed partly because European Union sanctions have disrupted alternative supply routes. WHO GMP certification has become a major requirement for most overseas customers, so the manufacturing standards conversation is now a gatekeeper for export orders. ## 2. Solar panels and PV modules: a sideline on the same factory floor **The company also manufactures solar panels and solar PV modules, a non-pharma business that shares the manufacturing infrastructure but faces growing price pressure as competitors enter.** - **A second product line, not a separate company** - the solar business operates within the same legal entity, with revenue from panel and module sales recognised alongside antacid API sales. There is no dedicated plant, separate workforce or distinct segment reporting, which makes it a product extension rather than a standalone engine. - **Price pressure from new entrants** - competitors are entering this non-pharma business, creating price pressure that the company flags as a risk to profitability. The solar line lacks the decades-deep specialisation and customer-switching friction that protect the antacid franchise. # Group structure and partners **The company is a tightly held promoter vehicle with a single manufacturing site under threat, a holding company that is becoming its landlord, and a history of significant related-party lending.** - **Controlled by the promoter holding company** - P & J Cretechem Private Limited holds 61.98% of the equity, and the company has no subsidiaries or associate companies of its own. Related-party transactions include buying from and selling to both the holding company and Tauras Chemicals Private Limited, an entity under common control. - **The factory is being pulled out from under it** - the company's main manufacturing facility at Mahad, Maharashtra, was operated under a leave-and-license agreement. On 29 December 2025, the licensor served a termination notice requiring the company to vacate by 31 March 2026, later extended to 30 April 2026. In response, the board approved a manufacturing arrangement with the holding company to use its facility at Dahej SEZ in Gujarat, where the listed company will apply for a license to get APIs manufactured without taking ownership of the plant or any intellectual property. - **The Hyderabad plant needs a revamp it may not get** - the company's other site at IDA Mallapur, Hyderabad, has received FDA observations requiring a major revamp, without which continuing the pharma business there would be difficult. The lessor may need the space for its own expansion, storage space for raw materials and intermediates is already short, and the lease carries only a three-month notice period. The company is negotiating a long-term arrangement but has also begun shortlisting contract manufacturers as a fallback. - **Significant loans flow to related parties** - loans to promoters and related parties stood at Rs. 2,442.64 lakhs as of FY25, representing 99.86% of total loans, up from Rs. 1,477.37 lakhs the year before. The board discussed a merger or amalgamation with the holding company in January 2022, though no transaction has been completed.