Accelerate pharmaceutical growth with high-quality MCC

We all know that the pharmaceutical industry is a complex ecosystem where numerous components come together to produce life-saving medicines. A steady supply of these components is essential for this industry to function smoothly, affecting everything from development schedules to patient access to meditation.

It is here that Sigachi Industries plays an important role through the production of microcrystalline cellulose (MCC). As a non-pharmaceutical ingredient, MCC plays an important role in manufacturing tablets, capsules, and other dosage forms. Sigachi’s MCC acts as a binder, extender, and disintegrant.

Due to its commitment to producing high quality MCC, Sigachi Industries has seen tremendous growth resulting in its stock price rising by 165.82% from Rs 24.49 on May 3, 2023 to Rs 65.10 on May 3, 2024. Will it continue to rise again? Let’s analyze this company in detail.

Sigachi Industries’ Industry Overview

The global pharmaceutical industry is poised for robust growth, expected to expand to a cumulative $500 billion from fiscal 2020 to fiscal 2027 and regain pre-pandemic momentum by 2024. Mature markets such as North America and Europe are expected to see slower growth, while emerging economies across Latin America are expected to see slower growth. , Asia and Africa are expected to see the highest growth due to surging populations and improved access to healthcare.

Specialized therapeutic segments are also fueling the market expansion. Oncology spending could nearly double to $370 billion by FY2027, the orphan drug market could reach $230 billion by FY2026, and biotechnology drugs could account for 35% of global spending by FY2027. The generics market remains lucrative and is expected to reach $426 billion by FY2026.

India is a powerhouse in this global pharmaceutical landscape. It ranks third in the world in pharmaceutical production in terms of production volume, accounting for 20% of global generic drug supply and 60% of vaccine production. The domestic market, valued at $41 billion in fiscal 2021, is expected to grow to $65 billion in fiscal 2024 and $130 billion in fiscal 2030.

Moreover, India’s pharmaceutical exports have performed remarkably during the pandemic, growing 24% in fiscal 2021 and maintaining a 22% increase in April-October 2022 compared to pre-COVID-19 levels, driven by strong global demand from over 150 countries. showed.

Company Overview of Sigachi Industries

market value industry Founded in 1989, the company focuses on manufacturing high-quality MCC, an important excipient used in the pharmaceutical, nutraceutical and food industries. Sigachi Industries is headquartered in Hyderabad, India.

With over 30 years of experience, Sigachi has manufacturing facilities in Gujarat, Telangana. They have established themselves as a global leader, exporting MCC products to over 50 countries across Asia, Australia, the United States, Europe, and the Middle East.

Currently, RP Sinha and Amit Raj Sinha are the Chairman and CEO of the company. Sigachi Industries was listed on the Stock Exchange of India on November 12, 2021. Sigachi operates in three segments, including Pharmaceuticals, Food & Nutra, and Cosmetics.

Out of this segment, Sigachi industries were created. 75% Among sales, pharmaceuticals, food and nutra 20% And the proportion of cosmetics is 5%

Finance of Sigachi Industries

In FY 2023, Sigachi Industries saw a significant increase in revenue reaching Rs 302.05 billion, up 20.68% compared to Rs 250.29 billion in FY 2022. When analyzed over a three-year period from fiscal 2021 to fiscal 2023, Sigachi showed mixed returns. The annual growth rate (CAGR) is 29.51%.

Looking at Shiga Value Industries’ net profit, profit increased by 8.7% due to increased MCC sales, and the contribution of the API manufacturing company acquired by Shiga Value Industries the previous year also increased.

In FY 23, Sigachi maintained favorable financial metrics with return on equity (ROE) of 17.55% and return on capital employed (ROCE) of 19.53%.

Sigachi Industries’ future plans

Shigachi Industries plans to diversify its pharmaceutical product mix through manufacturing advanced products and launching innovative value-added items. The company is expanding its MCC manufacturing capacity by more than 50%, from 14,000 metric tons per year to more than 21,000 metric tons per year.

Sigachi has commenced the establishment of a new Croscarmellose Sodium (CCS) manufacturing facility in Dahej Special Economic Zone (SEZ). This is an important step in strengthening the company’s manufacturing infrastructure and expanding its production capacity.

Sigachi is in the process of expanding its B2B marketplace from its nutritional ventures to feature ingredients and micronutrient premixes. The company also seeks to expand its presence in the global market by exploring untapped markets around the world.

In line with our diversification strategy, we established Sigachi Arabia, a joint venture with Saudi National Projects Investment Limited. With this move, they plan to establish a manufacturing facility in Riyadh within the next three years to meet local and regional demand. GCC (Gulf Cooperation Council) Mayor.

Sigachi has acquired an 80% stake in Trimax BioSciences, a leading active pharmaceutical ingredient (API) manufacturing company headquartered in Raichur. With this acquisition, Sigachi gains a complete ecosystem in the pharmaceutical industry and expands its capabilities beyond excipients. The Company is working to obtain regulatory approval for API manufacturing from the European Union and certain Latin American countries.

conclusion

Sigachi industrial success stories demonstrate our unwavering commitment to quality, innovation and customer focus. For over 30 years, they have established themselves as a global leader in MCC production, serving a variety of industries.

Going forward, Sigachi Industries is well positioned to take advantage of the constantly evolving pharmaceutical, nutraceutical and food environments. Our commitment to research and development puts us at the forefront of MCC technology, providing advanced solutions to meet our customers’ changing needs.

With a strong global presence, strong manufacturing capabilities, and focus on sustainability, Sigachi Industries is a trusted partner for companies seeking high-performance MCC solutions. As demand for MCC continues to grow, Sigachi is poised to play a key role in shaping the future of the diverse industries that rely on this important ingredient. What do you think of Sigachi Industries’ performance? Please mention your thoughts in the comments below.

Written by Pavunkumar VM

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