History

_x000D_ Aarti Drugs Limited (ADL) is a major manufacturer of  Active Pharmaceutical Ingredients (APIs), formulations, and speciality chemicals. The company operates as part of the Aarti Group, which is a conglomerate. The company was incorporated in 1984. It was also listed on the BSE in 1993, and in the same year, it set up facilities for the production of glyoxal, i.e. the main raw material for imidazoles.  In 1998, the company’s yearly turnover crossed ₹100 crore. They provide over 50 compounds for antibiotics, anti-protozoal, anti-inflammatory, anti-diabetic, anti-fungal and cardioprotectant purposes. They have 2 R&D centres, one in Tarapur and the other in Turbhe, Maharashtra._x000D_ _x000D_ In 2003, the company also became listed on the NSE. In 2005-06, they entered into a joint venture with a Chinese company and formed Huanggang Yinhe Aarti Pharmaceutical Company Ltd for manufacturing and selling of APIs in China.  In 2008, the company received approval for a facility from the USA’s Food and Drug Administration (FDA). _x000D_ _x000D_ In 2011, the company crossed a yearly turnover of ₹500 crore. Within 3 years, it doubled this amount by earning a turnover of ₹1,000 crore in 2014. During the year 2020, the company incorporated 2 overseas subsidiaries and 1 domestic subsidiary.  In 2022, the company commissioned a brownfield expansion of its speciality chemical plant at Tarapur, which became operational in May 2022. In 2023, the company crossed the standalone turnover of ₹2,500 crore.  The company is the largest producer of Metronidazole in India and of Tinidazole, Ketoconazole, and Fluoroquinolone formulations worldwide._x000D_

Business Segments

_x000D_ The company has the following business segments:_x000D_

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1. Active Pharmaceutical Ingredients (APIs) - The company is a leading API producer of over 50 molecules for antibiotics, antiprotozoal, anti-inflammatory, antidiabetic and antifungal purposes. This segment contributed around 85% of the total revenue in FY 2023, based on 9 manufacturing units and 30 APIs developed in the 5 years preceding FY 2023.
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2. Formulations - For this segment, the company adopted a flexible manufacturing approach with the combination of in-house manufacturing as well as an outsourcing model supported by in-house R&D.
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3. Speciality Chemicals, Intermediates and others - This segment involves being a backward integrated approach, supplying intermediates of antibiotics, antifungal, anti-inflammatory and cardiovascular to the API manufacturers. In this segment, they have a special focus on Benzene and Chloro-sulphonic chemistry
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_x000D_ Around 39% of the revenue came from exports in FY 2023._x000D_ _x000D_ Subsidiaries_x000D_ _x000D_ As of March 31, 2023, Aarti Drugs has 3 subsidiaries: _x000D_

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1. Pinnacle Life Science Private Limited - Pinnacle Life Science Private Limited (PLSPL) is a wholly-owned subsidiary founded to become a global leader in high-quality and cost-effective pharmaceutical formulations.
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2. Aarti Speciality Chemicals Limited - This is a wholly-owned subsidiary dedicated to speciality chemicals.
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3. Pinnacle Chile SpA (a foreign subsidiary) -This company supports the marketing of medication formulations and participates in tenders in Santiago, Chile.
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Key Personnel

_x000D_ Mr Prakash M. Patil, CMD and CEO_x000D_ _x000D_ Mr Patil has 4 decades of experience in the chemical and pharmaceutical industry. He has expertise in the roles of product identification, project conceptualisation, planning, project engineering and implementation._x000D_ _x000D_ Mr Rashesh C. Gogri, Managing Director_x000D_ _x000D_ Mr Rashesh C. Gogri has been appointed as the managing director of the company effective from September 26, 2014. He was the whole-time director of the company since October, 2012._x000D_

Corporate Actions

_x000D_ The company has performed the following corporate actions in recent years:_x000D_ _x000D_ Bonus Issue_x000D_

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1. It issued bonus shares at a 3:1 ratio with the record date of October 1, 2020.
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2. It issued bonus shares at a 1:1 ratio with the record date of March 25, 2015.
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_x000D_ Share Buyback_x000D_

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1. The company performed a buyback of its shares with a record date of August 4, 2023. 
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2. The company performed a buyback of its shares with the record date of April 1, 2021.
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3. The company performed a buyback of its shares with the record date of March 29, 2019.
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4. The company performed a buyback of its shares with the record date of January 19, 2018.
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5. The company performed a buyback of its shares with a record date of November 2, 2016.
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_x000D_ Mergers and Acquisitions_x000D_

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• In 2015, the company acquired 100% equity of Pinnacle Life Science Pvt Ltd. However, this subsidiary was wound up in 2021.
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• An amalgamation of a wholly owned subsidiary, Suyash Laboratories Ltd, into the company became operative effective from April 1, 2011.
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• In 1996, multiple companies were amalgamated into Aarti Drugs. These included Rupal Chemical Industries Ltd, Rashesh Chemicals & Pharmaceuticals Ltd, Manjarati Chemicals Pvt Ltd, Manjarati Plastisizer Pvt Ltd, Effective Chemicals Pvt Ltd, Star Aluminium Industries Ltd and Avez Wire Industries Ltd.
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