### **Overview** Innova Captab Limited is a fully integrated Indian pharmaceutical company with over 19 years of operations, spanning the entire drug value chain from R&D, API and formulation manufacturing, to domestic and international marketing and distribution. The company operates across four key business segments: 1. **Contract Development and Manufacturing Organization (CDMO)** 2. **Domestic Branded Generics** 3. **International Branded Generics** 4. **Sharon Bio-Medicine Limited** (a wholly owned subsidiary acquired in 2023) With a robust manufacturing footprint, global regulatory accreditations, and a rapidly expanding R&D infrastructure, Innova Captab has positioned itself as a preferred CDMO partner for leading Indian and international pharmaceutical firms, while also growing its branded presence in over 60 countries. --- ### **Business Segments & Performance Highlights (as of Nov 2025)** #### **1. CDMO Business – Core Growth Engine** - **Clients:** Serves over **300 global clients**, including 14 of India’s top 15 pharmaceutical companies. - **Portfolio:** Offers more than **3,700 formulations** across oral solids, liquids, dry syrups, ointments, dry powder injectables, parenterals, and respiratory respules. - **Revenue (H1 FY26):** ₹515.2 crores; Q2 FY26 revenue reached **₹265.7 crores**, reflecting 12% growth year-on-year. - **Growth Drivers:** Deeper customer engagement, expanded product portfolio, and new capacity at the Jammu facility. - **Pricing Model:** Cost-plus, ensuring stable margins. - **Client Retention:** **~80% of CDMO revenue** comes from clients with over **5 years of partnership**, underscoring strong trust and recurring business. #### **2. Domestic Branded Generics** - **Operated by:** Univentis Medicare Limited (UML), a wholly owned subsidiary. - **Distribution Network:** Reaches over **220,000 pharmacies** via **6,000+ distributors and stockists** across India. - **Product Portfolio:** Over **750 branded generic products** targeting high-growth therapeutic areas such as cardiovascular, diabetes, antibiotics, GI, and neurology. - **Revenue (H1 FY26):** ₹114.6 crores, up **31% YoY in Q2 FY26 and 43% in H1 FY26**, showing accelerating domestic demand. - **Touchpoints:** Over **2.2 lakh patient touchpoints** nationwide. - **Growth Strategy:** Pan-India expansion, enhanced distributor support, and new product launches. #### **3. International Branded Generics** - **Geographic Reach:** Exports to **60+ countries**, including **regulated markets** such as the **UK, Canada, Europe, Korea, Vietnam, and Australia**. - **Regulatory Approvals:** Holds **148–189+ active international product registrations**, with over 200 in pipeline. - **Portfolio:** Focuses on formulations and APIs across cardiovascular, anti-diabetic, and anti-infective therapies. - **Key Expansion:** Strategic entry into **regulated markets** via technology transfer (e.g., Canada) and dossier submissions. #### **4. Sharon Bio-Medicine Limited** - **Acquisition:** Acquired in June 2023 through the **Corporate Insolvency Resolution Process (CIRP)**. - **Contribution:** Contributed **~15.8–16%** of consolidated revenue in FY25 (₹1,968 million), with strong export orientation. - **Capacities:** Adds **API manufacturing** (365 MT/year) and **formulation capabilities** in Dehradun and Taloja. - **Synergies:** Drives vertical integration, cost efficiencies, and access to **regulated international markets**. - **Pipeline:** Developing **6 formulations for Europe** and launching **3 new products in the UK**. --- ### **Manufacturing & Capacity** - **Total Facilities:** **5 manufacturing plants** with **9 independent production blocks**: - Baddi (3 blocks), Dehradun (1), Taloja (1), Jammu (4) - **New Greenfield Facility:** Kathua, Jammu, launched in **January 2025**, with a capital investment of **₹450–480 crores**. - **Blocks:** Cephalosporin, Penicillin, Penem, and General (Injectables & BFS) - **Capabilities:** Oral solids, dry powder injections, dry syrups, large/small volume parenterals, respiratory respules. - **Capacity:** 10,679 million tablets, 1,440 million capsules, 547 million injectables. - **Ranking:** **Third-largest tablet and capsule manufacturer** in India (per CRISIL, Oct 2023). - **Accreditations:** All facilities certified by **WHO-GMP, EU-GMP, and UK-MHRA**; compliant with US-FDA and other global standards. - **Capacity Utilization:** Strategic underutilization in some legacy facilities (e.g., Baddi G Block at ~45%) allows room for future de-bottlenecking and scaling. --- ### **R&D Capabilities** - **DSIR-Recognized R&D Center:** Located in **Baddi, Himachal Pradesh**. - Staffed by **40+ scientists and engineers**. - Specializes in **immediate release, sustained release, super bioavailability capsules, nano-formulations, and modified-release tablets in capsules**. - Equipped with HPLC, UV spectrophotometers, dissolution testers, Karl Fischer analyzers, thermal stability units. - **Second R&D Center:** Under development in **Panchkula, Haryana**, expected operational in **H2 FY26**. - Focus: **Complex generics, high-barrier products**, and IP-driven dossiers. - Will support filings in **regulated markets** through Sharon. - **R&D Strategy:** Focus on **differentiated formulations**, tech transfer (e.g., 2 products launched in Canada), and 12+ off-patent molecule pipelines. --- ### **Growth Drivers & Strategic Initiatives** #### **1. Jammu Facility: Growth Catalyst** - **Expected Revenue Contribution:** ₹400–500 crores in first full year post-stabilization; potential of ₹1,200–1,300 crores over 5 years. - **Government Incentives:** Benefits under **New Central Sector Scheme (NCSS) for J&K**: - 300% GST-linked cash incentive on eligible capex. - 6% annual capital interest subvention (reducing funding costs). - Enhances profitability, especially for domestic sales. #### **2. Expansion into Regulated Markets** - Active presence in **UK, Canada, EU, and Australia**. - Strategic tech transfer deals and regulatory filings to grow in high-margin, compliance-intensive markets. #### **3. Vertical Integration via Sharon Acquisition** - Enables backward integration into **APIs**, reduces sourcing dependency. - Combines formulation strengths with existing CDMO footprint. - Creates operational and cost synergies across value chain. #### **4. Product & Portfolio Diversification** - Expansion into **complex dosage forms**: parenterals, respules, Penem, Penicillin, and beta-lactams. - Launch of **new product categories** (e.g., ointments, large volume parenterals). #### **5. Innovation-Led Growth** - Investment in **R&D for complex generics** and **high-margin, low-competition products**. - IP-based products being developed for co-marketing/partnerships to avoid high-cost independent launches. --- ### **Financial & Operational Highlights (as of Nov 2025)** | **Metric** | **Details** | |----------|-----------| | **Total Revenue (H1 FY26)** | ₹629.8 crores (CDMO: ₹515.2 cr, Branded Generics: ₹114.6 cr) | | **CDMO Revenue Share** | ~82% of total revenue in H1 FY26 | | **Exports Contribution** | **~30%** of total revenue | | **Revenue CAGR (3-year)** | ~38–40% | | **Target Revenue** | ₹2,500 crores within 3 years (by FY28) | | **Fixed Asset Turnover Ratio (FATR)** | Among highest in peer CDMO group (~2nd in ROCE) | | **Capital Expenditure** | ~₹480 crores in Jammu; ₹235 cr project loan at 6% interest | --- ### **Competitive Advantages** 1. **End-to-End Integration:** Seamless control from API to finished dosage. 2. **Global Regulatory Approvals:** EU-GMP and MHRA certifications open regulated markets. 3. **High Client Retention:** Long-standing relationships enhance revenue visibility. 4. **Efficient Asset Utilization:** High FATR signals superior operational efficiency. 5. **Government Incentives:** Cost advantage in Jammu facility improves margins. 6. **Strong R&D Focus:** Differentiated formulations reduce commoditization risk.