Medico Remedies Limited has informed the Exchange about Commencement of work for New Factory
MEDICO · price
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Medico Remedies has started construction of a new factory dedicated to manufacturing beta-lactam antibiotics including tablets, capsules, dry syrups, and injections (such as amoxicillin + clavulanic acid formulations). The new plant will add capacity of 25 million tablets, 45 million capsules, 10 million dry syrups, and 10 million injectables, with the project costing Rs. 30 crore to be funded through internal accruals and debt. The facility is being built per PIC/S international pharmaceutical standards and is expected to generate around Rs. 25 crore in additional revenue after receiving all regulatory approvals, over a 2-year timeline. The rationale is to cater to a new line of antibiotics demanded by overseas customers. The company's existing plant currently operates at about 70% utilization.
Positive long-term growth signal as the new factory diversifies the product portfolio and opens export opportunities, but shareholders should note the 2-year gestation period and the debt component of funding, which may pressure near-term financials before the Rs. 25 crore revenue potential materializes.