Aarti Speciality Chemicals, a wholly-owned subsidiary of Aarti Drugs has received an approval accorded under Production Linked Incentive (PLI) scheme for pharmaceutical sector.
Government of India's Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers recently launched a Production Linked Incentive (PLI) scheme to promote domestic manufacturing by incentivising pharmaceutical manufacturers to set-up greenfield projects in India with a minimum domestic value addition in four different target segments (Two in Fermentation based - at least 90% and Two in the Chemical Synthesis based - at least 70%) with a total outlay of Rs 6,940 crore.
The objective of the scheme is achieving self-reliance and reducing import dependence in these critical 'Key Starting Materials (KSMs)/ Drug Intermediates/ Active Pharmaceutical Ingredients (APIs)' in the country. The tenure of the scheme is from FY21 to FY30.
Aarti Speciality Chemicals has received approval for 2-Methyl-5Nitro-Imidazole (2-MNI) with a committed production capacity of 4,000 MT per annum under Target Segment III (Key Chemical Synthesis Based KSMs/Drug Intermediates). The rate incentive will be 10% of sales value per annum for a period of 6 years - FY23 to FY28.
Adhish Patil, Chief Financial Officer - Aarti Drugs said the government's approval to our application under PLI scheme will help the company to diversify its product portfolio, increase the top-line and enhance the profitability & margin profile of the company.
The announcement was made on Saturday, 6 March 2021. Shares of Aarti Drugs lost 3.67% at settle at Rs 665.70 on Friday, 5 March 2021.
Aarti Drugs is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Speciality Chemicals and produces Formulations with its wholly-owned subsidiary- Pinnacle Life Science.
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