Lasa Supergenerics gets SEIAA clearance for expansion of its Khed plant

The leading API manufacturer, Lasa Supergenerics informed the bourses on Wednesday that it has received environmental clearance from State Environment Impact Assessment Authority (SEIAA) for expanding its ‘benzimidazole derivatives’ capacity at the company’s manufacturing facility at Khed (Maharashtra).

The proposed capacity expansion will require only a de-bottlenecking CAPEX as the company already has the necessary infrastructure and machinery in place. Besides, Lasa Supergenerics was awaiting the clearance to begin operationalising its assets, the company stated in a press release to the exchanges.

Post-expansion, the volumetric capacity of the company is projected to increase by 2,500 TPA, taking the company’s total volumetric capacity to a total of 6,800 TPA. The proposed expanded capacity will be used to manufacture benzimidazole derivatives (such as Albendazole, Fenbendazole, and others) of which, the company is one of the prominent suppliers. The capacity expansion is expected to be commissioned in Q3FY21 and would contribute to the top-line of the company from Q4FY21 onwards.

Lasa Supergenerics is one of the leading players in the manufacturing of veterinary APIs. Around 20 per cent of its APIs are exported to countries such as Australia, Bangladesh, Middle East, China, Turkey, Egypt, Jordan, Korea, and Pakistan.

Despite the announcement, the stock of Lasa Supergenerics was trading at Rs 75.25 per share, down by 0.59 per cent or Rs 0.45 per share on BSE, against a 0.77 per cent gain in the benchmark index. Its 52-week high is recorded at Rs 83 and the 52-week low is Rs 16.90 on BSE.