Cilicant Chem eyes at Hyderabad market potential for their growth  

To set up its marketing base at Hyderabad

Cilicant Chem eyes at Hyderabad market potential for their growth  
Manish Jain, MD, Fahmim Hussain and Sumeet Sharma, Directors of Cilicant Chem Pvt Ltd at the press conference held in Hyderabad,

Hyderabad: The market leader in the active pharmaceutical packaging manufacturing in India, Cilicant Chem Pvt Ltd, eyes at Hyderabad market potential for their growth. Addressing their maiden press conference in India at Hyderabad, the Pharma Capital of India, Mr. Manish Jain, Managing Director, disclosed that they are foraying into South Indian market through Hyderabad. The company has firmed up its plans to set up a marketing base at Hyderabad very soon. It will be their hub for the South Indian market.
Pharmaceutical desiccants are used to control the humidity and moisture inside the pharmaceutical packaging in order to increase the product’s shelf life. They aid by removing the moisture effectively from the container or bottle’s top surface when products are packaged.
In the light of rising chronic diseases, it is estimated to propel the demand for pharmaceutical desiccants. Increasing initiatives for safer drug delivery to end-users, the market is estimated to propel across the globe. On the back of growing pharmaceutical industry, the pharmaceutical desiccant market is anticipated to record a CAGR of 4.3% over the forecast period.
The Pune based, the holder of Type III Drug Master File with USFDA, Master File with Health CANADA, Celicant Chem plans to expand its market significantly in Hyderabad. It is one of the fastest-growing active packaging manufacturers based in India.
Hyderabad, as we all know, plays a dominant position in the Pharma Sector in India. It ranks first in manufacturing of bulk drugs and third in formulations in the country. It accounts for 40 per cent of the total Indian bulk drug production and 50 per cent of the bulk drug exports and is considered as the 'Bulk Drug Capital of India'. And this fact cannot be ignored by us. By expanding to Hyderabad and consolidating our marketing operations in the city, we would like to tap the potential of this market as part of the growth plan chalked for next couple of years, shared Mr. Manish Jain.
Speaking further, Mr. Jain stated, “Hyderabad is one of the key markets for Cilicant’s growth. The state has made excellent inroads in the pharma sector and Cilicant endeavours to make a significant contribution and grow in this space. I have extended the product pipeline by adding desiccant canisters and oxygen absorbers. While the pharma sector is of immense importance, there is also scope for growth for the active packaging industry in non-pharma sector which is INR 2,500 crore Industry”
Giving the overview of the industry, Mr. Manish Jain pegged Indian pharma desiccant market size at Rs 500 Cr" India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms, he added.
Medicine spending in India is projected to grow 9-12 per cent over the next five years, leading India to become one of the top 10 countries in terms of medical spending. The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 19.14 billion in FY19. Pharmaceutical exports include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical, he shared.
Speaking about their manufacturing capabilities, Mr. Manish Jain said, “We are in the process of setting up our 3rdmanufacturing plant in Pune at an estimated investment of INR. 25 crore. Giving details about Cilicant, performance, Manish said, it is expected to close FY20 with a turnover of INR 45 to INR 48 crore, growing annually at 50% every year. The company is profitable, generating earnings before interest, tax, depreciation and amortization of 24% and upwards. Cilicant is targeting Rs.200 crore in revenue by FY2025”.
The company is open for PE funding.
Cilicant’s manufacturing facility holds Type III Drug Master File with USFDA, Master File with Health Canada. This unit is certified with cGMP ISO 15378:2017 (specifies requirements for current Good Manufacturing Practices (cGMP) and a quality management system (QMS) for manufacturers of primary packaging materials for pharmaceuticals). Organizations which have been certified under the standard must consistently adhere to meet customer requirements, in compliance with the regulations and standards specified for packaging materials used in pharmaceutical applications.
A 3rd plant is on the anvil. Its product range, specially designed for the healthcare industry, comprises of desiccant sachets/bags, canisters and oxygen absorbers, etc.