Indian generic formulation-makers level of capex declining: Candle Partners

Candle Partners study shows that from the peak of 30% of gross block in FY16, the capex is down to 9-10% of gross block

Indian generic formulation pharma companies’ capex has been steadily coming down, shows data from investment banking and consulting firm Candle Partners.

Speaking to Business Standard, Candle Partners founder Navroz Madhudawala said that the level of capex over the last three to four years has reduced for formulation generic companies. “It peaked for large caps at around 30 per cent of Gross Block in FY2016, which was the peak of regulated market investments by Indian pharma. Since then it's been a consistent decline and is now stabilised at 9-10 per cent of Gross Block for the last 2 years (FY2021, FY2022).” 

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