Private equity-backed Sekhmet Pharmaventures aims to reach ₹2,000 crore in revenue in three years by pivoting to contract manufacturing. The firm plans to invest ₹150 crore to expand capacity and attract global innovator clients, capitalizing on international supply chain shifts.
Sekhmet Pharmaventures, a pharmaceutical platform supported by investors including PAG, CX Partners, and Samara Capital, has outlined a growth plan to reach ₹2,000 crore in revenue within three years. The company currently generates over ₹1,500 crore in revenue. This strategy marks a pivot from its traditional volume-based Active Pharmaceutical Ingredient (API) business toward an integrated Contract Development and Manufacturing Organization (CDMO) model.
Expanding Capacity for Global Clients
To support this shift, the company plans to spend between ₹125 crore and ₹150 crore to add roughly 400 KL of high-compliance reactor capacity. This funding will come from internal cash flow. The company expects these new facilities to hit 70% to 75% utilization by fiscal year 2027. Sekhmet has recently passed three inspections by the United States Food and Drug Administration (USFDA), which is a necessary step for gaining business from innovator pharmaceutical companies in markets like the United States, Europe, and Japan.
Strategic Shift to CDMO Model
According to Managing Director Santosh Mahil, the CDMO segment already makes up about 40% of the company's total revenue and is seeing growth of 40% to 50% per year. Unlike standard API production, which can face intense price competition, the CDMO model focuses on long-term partnerships. Qualifying a manufacturing site for a specific commercial medicine often takes five to seven years. Once a company is approved by a client, it becomes difficult for competitors to displace them, which helps in securing predictable, long-term orders.
Market Tailwinds and Future Outlook
Sekhmet is also positioning itself to benefit from global supply chain changes. The US Biosecure Act is encouraging many pharmaceutical innovators to look for suppliers outside of China. Additionally, the company is preparing for potential US tariffs by positioning itself as a qualified supplier that can bill the US market directly. While API businesses often see lower market valuations, integrated CDMO players typically trade at higher valuations due to the specialized nature of their work and higher profit margins.
The company has also secured land near Vishakhapatnam and Chennai for future projects and is currently upgrading five of its existing plants. As of now, Sekhmet does not have immediate plans for an Initial Public Offering (IPO) and intends to fund its expansion plans through its own earnings. Investors will likely monitor how effectively the company manages the construction and commissioning of these new reactors and whether it can successfully sign on new innovator clients to fill the added capacity.