“Bal Pharma has managed to improve its capacity utilization following the easing of Covid related supply chain and logistical issues. With this, the Company is poised to further strengthen its market-leading position in diabetes as a therapeutic segment. Bal Pharma’s leading product Gliclazide enjoys consistently growing demand from customers across continents, enjoying sizable brand equity in API and formulations. Soon the Company will launch its formulation of Gliclazide MR 30 and 60 mg tablets in the EU market and is expected to file a dossier in Q1FY23. While Africa and Latin America remains the dominant market for export formulations, the Company is targeting increasing its presence in various other geographies like Southeast Asia and CIS countries.” said Shailesh Siroya, Managing Director, BAL Pharma.
Bal Pharma Gliclazide API exports footprint covers more than 35 countries across the world. The Company is targeting to further expand its geographic presence in Gliclazide and has supplied samples to new customers. The domestic market for Gliclazide (API + Formulations) is close to 60% of overall sales of Gliclazide for FY21.
Besides improving the market share, Bal Pharma is also committed to reducing import dependency for Gliclazide raw material N-Aminio Azabicyclo octane (3,3,0) hydrochloride. Around 70-75% of the raw material for this product is imported from China. To reduce the exposure and dependence of imports, the Company has tied up with domestic suppliers for sourcing raw materials and is also exploring opportunities for backward integration. The Company is confident of reducing the imports to less than 33% over the next three years. Overall. import as a percentage of total raw materials for FY2020 and FY2021 stood at 34% and 42% respectively.
Bal Pharma is one of the largest producers and exporters of an API Gliclazide, which is used to treat type 2 diabetes. The company has a total capacity to manufacture 17.5 MT Gliclazide per month. One of the manufacturing facilities located at Bommasandra, Bangalore, with the capacity of 7.5 MT per month, its capacity utilization dip to 60% due to Covid related lockdown, which bounced back to 85% utilization level in FY2021. The second unit with a manufacturing capacity of Glicalzide of 10 MT per month is located at Udaipur, Rajasthan which has started production in September 2020. This new facility operated at 35% utilization during FY2021 which has now stabilized and has been operating at 45% during the first five months of FY2022.
With improved utilization, Bal Pharma is further strengthening its market-leading position in Gliclazide. The Company expects to achieve an average utilization of 70% of its Gliclazide capacity in FY2022.
On Sensex, Bal Pharma finished at Rs104.65 per piece higher by 2.15%.