Bajaj Healthcare forays into Opiate Processing Business for Government of India; stock climbs ~3%

13 Jul 2022 , 10:32 AM

Bajaj Healthcare Limited (BHL), a leading manufacturer of APIs, Intermediates, and Formulations, has received two tenders from the Government of India, Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories, GOI for manufacturing Concentrated Poppy Straw (CPS) and Alkaloids/Active Pharmaceutical Ingredients (APIs) from unlanced poppy capsules along with straw through CPS-Reg and Opium Gum.

Both tenders will be carried out at the company’s API manufacturing facility in Savli, Gujarat, India.

The APIs will be manufactured under highly regulated conditions and in strict accordance with the Government of India’s protocols. With capacity enhancement capabilities, the unit is well-positioned to cater to all mandated quality checks and controls.

Mr. Anil Jain, Joint Managing Director, Bajaj Healthcare, commented on the above business updates, saying, “It is with great pride that I would like to announce that BHL has successfully ventured into the highly regulated category of Opiate processing for the Government of India.

We have been awarded two long-term contracts for the supply of Opium-derived Alkaloids and APIs to the GOI, and we expect subsequent orders under similar tenders to scale up to processing 6,000 MT of Poppy Straw and Opium Gum in the next five years.

The tender is expected to result in overall margin expansion for the company, owing to improved capacity utilization of the existing plant. APIs and extracts derived from plants are commonly used in a wide range of pharmaceutical applications.

At around 10.36 AM, Bajaj Healthcare was trading at Rs351.25 up by 3.02% from its previous closing of Rs340.95 on BSE. The scrip opened at Rs345 and has touched intraday high and low of Rs365 and Rs345 respectively.