Kashmik Formulation plans 50 per cent production capacity expansion and targets ₹100 crore revenue in FY26
Ahmedabad-based pharma company outlines investment and export strategies, automation upgrades, and long-term diversification into injectables
Kashmik Formulation, a pharma manufacturing firm based in Ahmedabad, has announced plans to expand its production capacity, increase automation, and enhance its international footprint. The company has set a revenue target of ₹100 crore for the financial year 2025–26, following a 100 per cent year-on-year growth from ₹20 crore in FY23–24 to ₹40 crore in FY24–25.
Currently operating at full capacity, Kashmik Formulation produces one crore tablets daily. The company is now planning to enhance its capacity by 50 per cent, which would increase daily output to 1.5 crore tablets. To support this, the company is investing approximately ₹20 crore in infrastructure development, which is already underway.
The company generates around 70 per cent of its revenue from its own branded generics and 20–30 per cent from contract manufacturing for established pharmaceutical companies. Exports currently account for 20 per cent of total revenue. Kashmik aims to increase this to 50 per cent in the coming years by registering its products in semi-regulated international markets, including Myanmar, Latin America, and select African countries.
In a recent move, Kashmik launched Dapagliflozin under the DAPNEC brand in the anti-diabetic segment. The product is priced up to 400 per cent lower than comparable brands in the market.
The company is also investing ₹4–5 crore in automating its packaging operations. This investment is intended to improve productivity and ensure compliance with evolving regulatory requirements. In addition, Kashmik plans to establish a new R&D centre in Jammu and has outlined a long-term vision to diversify into injectables within the next three to five years.
Commenting on these developments, Nilesh Patel, Managing Director of Kashmik Formulation, said, “At Kashmik, we are focused on building scalable, efficient, and globally competitive pharmaceutical manufacturing capabilities. Our immediate goal is to expand capacity and international reach while maintaining our commitment to quality, affordability, and innovation. The strategic investments we are making today will shape the foundation for our long-term growth and global positioning.”
While the company is not currently raising external capital, it is exploring the possibility of an Initial Public Offering (IPO) within the next two to three years as part of its broader strategic roadmap.
Kashmik Formulation has also noted the continued dependence on Chinese Active Pharmaceutical Ingredients (APIs) as a key challenge for mid-sized Indian pharmaceutical manufacturers. The company highlighted the cost-related constraints in diversifying sourcing but expressed optimism about industry growth, particularly due to favourable government incentives for GMP compliance and R&D.