Venkat Jasti, chairman and managing director (CMD) of Suven Pharmaceuticals, on Thursday, said that its speciality chemicals business is in a steady state, and its Contract Research and Manufacturing Services (CRAMS) is expected to grow.
Suven Pharma reported good earnings for the March-ended quarter. Revenue grew 40 percent this quarter, aided by the pharma segment as well as a rebound in the speciality chemical segment.
Speaking in an interview with CNBC-TV18, Jasti said, “Specialty chemicals is more or less in a steady-state; 5 percent this way or that way, but we expect around 20 percent growth in CRAMS business and 15-20 percent on the formulation; unless we have some good product that comes in and gets approved then it can change.”
On raw materials, he said, “Raw material prices have gone up, mainly in the first quarter, because COVID (second wave) began in April and hence, oxygen demand had gone up too. So, some of the raw material prices had gone up by 4x-5x, but they are now in a downward trend with sufficient oxygen given to the industry. This will have some impact for the first quarter also.”
He expects to grow 15-20 percent in FY22 but COVID third wave remains a variable.
For the entire management interview, watch the video.