Update on capacity addition at Dahej facility.
FERMENTA · price
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Fermenta Biotech's Board has approved a Rs. 110 crore investment to expand capacity at its existing Dahej, Gujarat facility. The investment will be split into Rs. 60 crore for plant-based Vitamin D3 and Vitamin D3 derivatives (including Calcifediol), and Rs. 50 crore for green chemistry enzymes such as CAL-B Lipase and Penicillin G Acylase. The planned addition includes around 1 tonne of plant-based Vitamin D3, 50 kg of Vitamin D3 derivatives, and 75 KL of fermentation capacity annually. Implementation will be phased across FY26 and FY27, funded through a mix of internal accruals and debt. The company recently secured an India process patent for plant-based Vitamin D3 and sees growing global demand for vegan-compliant nutrition and sustainable biocatalysts, which the new capacity aims to serve.
This is a material capital expenditure that signals management's confidence in long-term growth in plant-based Vitamin D3, high-value Vitamin D3 derivatives, and green chemistry enzymes. Shareholders should expect higher near-term capex and possibly some debt on the books, but the expansion could drive future revenue and margin growth if demand materializes as anticipated.