Sigachi Industries Limited, a leading manufacturer of pharmaceutical excipients, APIs, and specialty ingredients, has announced a significant expansion of its microcrystalline cellulose (MCC) manufacturing capacity. The company is set to add a new 12,000 MTPA (metric tonnes per annum) project at its Dahej Special Economic Zone (SEZ) unit in Gujarat, marking a substantial step in its growth strategy.

Expansion Details

The expansion project includes:

• A new 12,000 MTPA MCC capacity at the Dahej SEZ
• Expected to be operational within 9 months
• Advanced Spray Dryer system designed with a focus on safety and excellence
• Consultation with reputed equipment manufacturers and safety experts for the new system

Strategic Importance

This expansion is a key part of Sigachi Industries' long-term vision, emphasizing:

1. Operational Resilience: The new capacity will enhance the company's ability to meet growing demand.
2. Safety-First Design: The project incorporates globally benchmarked safety features.
3. Global Leadership: The expansion will cement Sigachi's position as the largest MCC manufacturer in India and among the top globally.

Capacity Boost

Business Continuity and Customer Service

The new Dahej SEZ facility, along with increased production at existing Jhagadia and Dahej SEZ facilities, will ensure uninterrupted supply to Sigachi's global clientele across 65+ countries.

Management's Perspective

Amit Raj Sinha, MD & CEO of Sigachi Industries, commented on the expansion: "This new capacity at Dahej is a testament to our spirit. It is not just about volumes, but about creating the safest and most reliable excipient manufacturing ecosystem in the world."

Recent Developments

The company acknowledged a recent incident at its Pashamylaram unit, stating that an investigation committee is continuing its work. The new Dahej project reflects Sigachi's determination to strengthen its operations with improved systems and safety measures.

Market Position

Sigachi Industries continues to strengthen its position in the pharmaceutical excipient market:

• Operates 4 multi-locational facilities in Telangana, Gujarat, and Karnataka
• Established subsidiaries in UAE and USA for improved global responsiveness
• Focuses on innovation, quality, and regulatory compliance

This expansion project underscores Sigachi Industries' commitment to growth, safety, and maintaining its leadership in the pharmaceutical excipient industry. As the company moves forward with this significant capacity addition, it aims to enhance its ability to serve the global pharmaceutical and nutrition community while prioritizing operational excellence and safety.

Sigachi Industries Limited , a leading manufacturer of Microcrystalline Cellulose (MCC), has reported a significant setback following a fire incident at its Pashamylaram unit in Hyderabad. The incident, which occurred on June 30, 2025, has resulted in a substantial financial impact and temporary disruption of operations.

Financial Impact and Insurance Coverage

The company has reported a total loss of INR121.01 crores due to the incident, including:

Sigachi has filed an insurance claim for approximately INR90.00 crores to cover the losses. Additionally, the company has a business interruption policy that covers operating profits up to INR25.00 crores for 12 months.

Operational Impact and Recovery Plans

The affected Pashamylaram unit, which contributed 29% of Sigachi's total installed capacity (6,400 metric tons out of 24,000 metric tons annually), is expected to remain shut for approximately 180 days. The company estimates a revenue impact of INR60.00 crores over the next six months, with production being reallocated to its Dahej and Jhagadia units.

Despite the setback, Sigachi's management remains optimistic about minimizing the impact on the bottom line, citing insurance coverage for loss of profits. CFO O. Subbarami Reddy stated, "We hope it may be around INR550.00 crores to INR575.00 crores in revenue for the year."

Q1 FY2026 Performance

For the first quarter of FY2026, Sigachi posted:

• Operating income of INR128.00 crores (up from INR95.00 crores in Q1 FY2025)
• EBITDA of INR24.00 crores with a margin of 18.79%
• Net loss of INR101.00 crores (compared to INR13.00 crores profit in Q1 FY2025)

The MCC segment contributed INR103.00 crores to the revenue, while O&M and API segments recorded INR13.00 crores and INR9.00 crores, respectively.

Future Outlook and Strategic Initiatives

Despite the challenges, Sigachi Industries is moving forward with its growth initiatives:

1. The R&D center in Hyderabad is set to commence operations from July 28, 2025.
2. Commercialization steps for the CCS facility at Dahej are progressing.
3. The Trimax unit at Raichur, Karnataka, is scaling up with a focus on regulatory compliance.
4. The company has secured terms of reference for an upcoming bulk drug and specialty chemical unit in Orvakal, Andhra Pradesh.

Amit Raj Sinha, Managing Director and CEO, emphasized, "Our strategic focus remains unchanged, deepening core capabilities, expanding into high-growth areas, strengthening operational resilience, and driving long-term stakeholder value."

Compensation and Support for Affected Families

Sigachi has initiated compensation payments, including:

• INR10.00 lakhs each to the families of 46 deceased employees
• INR15.00 lakhs to the families of 8 unaccounted team members
• INR1.00 lakh each to 25 injured employees

The company is also covering all medical expenses for those affected.

As Sigachi Industries works to recover from this setback, the company remains committed to maintaining safety standards and ensuring business continuity. The management's proactive approach in addressing the incident and its financial implications demonstrates resilience in the face of adversity.