Aarti Drugs CFO : Exports from Tarapur plant will start within 18 months

MUMBAI : Adhish Patil, CFO of Aarti Drugs, expects the company’s Tarapur plant in Maharashtra to commence exports within 12 to 18 months.

Currently, the Tarapur facility contributes about ₹25–35 crore annually to the company’s revenue. However, it has the potential to generate around ₹80 crore per year based on the product mix.

The plant features two large, multipurpose production blocks capable of manufacturing antibiotics, sedatives, and anti-inflammatory products.

In December 2024, Aarti Drugs received the Establishment Inspection Report (EIR) from the US FDA for its active pharmaceutical ingredient (API) facility at Tarapur. This regulatory milestone is crucial not only for accessing the US market but also for regaining the trust of European clients who had concerns due to a previous import alert.

Patil said that although the plant had European approval, exports to Europe had been hampered by the alert.

The US FDA approval marks a significant step forward in re-establishing the plant’s credibility and unlocking its export potential.

The company aims to achieve ₹4,000 crore in revenue by 2026-27 (FY27). Key drivers for this growth include two newly operational greenfield projects, ongoing brownfield expansions, and the recent regulatory approval from the US FDA.

Patil also highlighted the company’s progress on regulatory compliance, with three Brazilian approvals, multiple European clearances, and now the US FDA nod in the past two years.

However, he stressed the need to focus on improving regulatory sales and commercialising their capabilities more effectively. Aarti Drugs currently has a market capitalisation of ₹4,112.63 crore. Over the past year, its shares have declined by approximately 11%.