Biofil Chemicals & Pharmaceuticals is a small Indian manufacturer that makes the chemical building blocks other drug companies need - bulk drugs, active pharmaceutical ingredients (APIs), and intermediates - alongside a line of industrial and pharmaceutical chemicals. Incorporated in 1985 and operating from a single consolidated plant in Pithampur, Madhya Pradesh, the company has spent the last decade pivoting from a multi-product, multi-site model toward a leaner setup built around a deep commercial relationship with a related party, Cyano Pharma Private Limited, which gives it indirect access to government healthcare supply contracts. The recurring approach is to manufacture what its B2B customers need as raw materials, earn steady fees from contract manufacturing, and use a family-linked partner to reach institutional buyers without building its own marketing muscle. # Business segments Three engines that feed the same domestic pharmaceutical supply chain - a pharma-ingredients core, a chemicals sideline, and a contract-manufacturing stream that once anchored the business - all run from one plant and sold through one related-party channel. ## 1. Pharma Unit: the raw-material kitchen for other drug makers **The company makes the active chemical ingredients that go into painkillers, anti-inflammatory drugs, dewormers, and steroid therapies - selling them in bulk to formulators who turn them into finished tablets and injections.** - **APIs and intermediates are the product** - the unit manufactures Diclofenac Sodium, Aceclofenac, Mefenamic Acid, and Fenbendazole, along with chemical intermediates like 4-Nitro Benzyl Chloride and Paranitrobenzyl Alcohol, all of which function as raw materials for other pharmaceutical companies. - **Steroids add a specialised line** - it has produced nearly 150 Kg of Dexamethasone Sodium Phosphate and has Betamethasone and Fluorometholone in the pipeline, with environmental clearance to make steroids and hormones up to 90 tons and APIs and intermediates up to 1,800 tons. - **Sold through a related-party funnel** - the unit's finished products become raw materials for Cyano Pharma Private Limited (CPPL), which then sells finished goods to various state governments, so Biofil reaches government healthcare procurement without bearing the marketing cost itself. - **Regulatory permission is the licence to operate** - the unit is governed by the Drugs and Cosmetics Act, 1940, the Drugs (Pricing Control) Order, 2013, and other statutes, and in late 2023 the state drug controller mandated HLL to suspend manufacturing at Biofil's old Indore site pending document verification. ## 2. Chemicals Unit: iron supplements and industrial salts **A smaller, complementary business that makes ferrous sulphate in three forms for anaemia treatment and wastewater plants, plus cellulose powders that bind tablets together.** - **Ferrous sulphate is the flagship** - the unit produces it in Crystal, Exsiccated, and Granular forms, with the granular version saving tablet makers four to five production stages because it is a ready ingredient for ferrous sulphate and folic acid tablets used to treat anaemia in expectant mothers. - **Dual end-markets, same molecule** - the crystal form goes to industrial effluent treatment plants for wastewater processing, while the granular and exsiccated forms serve pharmaceutical manufacturers making iron-deficiency drugs. - **Excipients for the industry** - Microcrystalline Cellulose Powder and Cellulose Powder act as binders and fillers in tablet manufacturing, making them essential inputs for the same formulators who buy the pharma unit's APIs. - **Land-rich but cash-constrained** - the unit sits on a 106,875-square-metre leasehold plot in Pithampur, of which roughly 94,463 square metres has stayed vacant because of operational bottlenecks and high investment needs, and in August 2025 the company proposed selling about 80,156 square metres of it. ## 3. Job work: contract manufacturing that once paid the bills **A fee-for-processing stream where the company ran its machines on someone else's materials - historically the most stable income source, now diminished after a regulatory dispute.** - **Paid to process, not to sell** - under a tri-party agreement signed in 2017 with Cyano Pharma and HLL Lifecare Limited (a government enterprise), Biofil provided manufacturing facilities and labour at its Indore site while HLL supplied the materials, generating an average annual income of ₹153.24 lakhs from FY2017-18 to FY2021-22. - **The HLL relationship unravelled** - over the two years before FY24, HLL's inadequate response to operational problems caused sales to drop sharply, and in November 2023 the Madhya Pradesh drug controller ordered HLL to stop manufacturing at Biofil's facility until documents were verified and costly renovations completed. - **Now folded into the main units** - with the Indore facility sold off in two parts in February 2025 (plant and machinery to CPPL, land and building to Formo Plast), all remaining manufacturing and any job work has been consolidated into the Pithampur plant. # Group structure and partners **A family-controlled, single-entity company whose most important commercial relationship is with a firm run by the same family - that firm is the route to government sales.** - **No subsidiaries, no joint ventures** - Biofil is a standalone listed entity with no holdings in any other company, controlled by the Shah family through direct shareholdings and promoter-group investment vehicles. - **Cyano Pharma is the commercial linchpin** - CPPL is a related party where multiple Biofil directors and their relatives serve as directors and members, and it engages in purchase and sale of goods and job work with Biofil and has supply relationships with various state governments; proposed related-party transactions with CPPL for FY26 are up to ₹35 crores. - **The old plant was sold to insiders** - when the company exited its Sanwer Road, Indore site, it sold the plant and machinery to CPPL for a minimum of ₹2.15 crores and the leasehold land and building to Formo Plast Private Limited, another related party, for a minimum of ₹2.00 crores. - **A lean operation** - as of FY25, the entire company employed 26 people and operated from a single manufacturing location at Pithampur, having consolidated everything after the Indore disposal.