Fermenta Biotech has announced a major expansion initiative with the approval of a ₹110.00 crore investment to enhance its manufacturing capabilities at the Dahej facility. This strategic investment represents the company's commitment to advancing sustainable pharmaceutical manufacturing and expanding its product portfolio in high-growth segments. The Board of Directors approved this comprehensive investment program during their meeting on December 10, 2025.

Investment Overview

The approved investment will focus on expanding the Dahej facility's capacity and capabilities across three critical areas of pharmaceutical manufacturing:

Strategic Focus Areas

Plant-Based Vitamin D3 Production

The expansion will establish commercial-scale manufacturing for plant-based Vitamin D3, a breakthrough innovation for which Fermenta has recently received process patent protection in India. The facility will have a proposed capacity of approximately 1 tonne of plant-based Vitamin D3 per annum, requiring an investment of around ₹60.00 crores. This pioneering development positions Fermenta among the first companies globally to commercialize sustainable plant-derived Vitamin D3, addressing the rapidly growing market demand for vegan-compliant and sustainable nutritional ingredients.

Vitamin D3 Derivatives Manufacturing

The enhanced facility will focus on manufacturing various Vitamin D3 derivatives, including Calcifediol, with a proposed capacity of 50 kg per annum. This novel Vitamin D3 analog represents the next generation of Vitamin D metabolites with enhanced clinical relevance for bone health and therapeutic applications. The company has successfully developed technologies for manufacturing Vitamin D3 derivatives, and the commercialization will help add high-value formats to its global portfolio.

Green Chemistry Enzymes Development

The expansion includes significant capacity addition for green chemistry enzymes, specifically CAL-B Lipase and Penicillin G Acylase (PGA), with a fermentation capacity of approximately 75 KL requiring an investment of around ₹50.00 crores. Fermenta's competitive differentiation stems from its pioneer status as India's first PGA manufacturer since 1986, with proprietary Novel PGA (NPGA) technology delivering industry-leading conversion rates for amoxicillin and ampicillin synthesis.

Capacity Specifications

The detailed capacity additions across different product segments are structured as follows:

Market Positioning and Strategic Impact

This expansion initiative positions Fermenta Biotech to capitalize on multiple high-growth market segments. The plant-based Vitamin D3 production addresses the fast-growing vegan and sustainable nutrition megatrend, while the enzyme platform addresses the pharmaceutical industry's urgent need for sustainable biocatalytic processes. The capacity expansion aligns with Indian companies' investments in penicillin G and semi-synthetic penicillin manufacturing under the Production Linked Incentive (PLI) scheme.

According to Managing Director Prashant Nagre, this investment represents a decisive step in Fermenta's strategic evolution as a leader in complex, science-validated manufacturing at scale, leveraging the company's DBT-approved R&D Excellence Centre and global-scale manufacturing capabilities.

Fermenta Biotech , a leading biotechnology company, has announced a significant investment plan to expand its Dahej facility. The company's board has approved a ₹110 crore investment aimed at enhancing its production capabilities in specialized biotechnology products.

Expansion Details

The approved investment will focus on three key areas:

1. Plant-based Vitamin D3
2. Vitamin D3 derivatives
3. Green chemistry enzymes

This strategic move is expected to position Fermenta Biotech for growth in these specialized biotechnology segments.

Implementation Timeline

The company has scheduled the expansion plans for implementation over two fiscal years:

• FY26 (2025-2026)
• FY27 (2026-2027)

Financial Context

To provide context for this investment decision, let's look at some key financial metrics from Fermenta Biotech's recent balance sheet:

The company's financial position shows a notable increase in total assets and current assets, indicating a strong foundation for this expansion initiative. The significant growth in total equity also suggests improved financial stability, which could support the planned investment.

Potential Impact

This expansion is likely to strengthen Fermenta Biotech's position in the biotechnology sector, particularly in the production of plant-based Vitamin D3, its derivatives, and green chemistry enzymes. The investment aligns with the growing demand for specialized biotechnology products and may contribute to the company's long-term growth strategy.

As the expansion plans unfold over the next two fiscal years, stakeholders will be keen to observe how this investment translates into enhanced production capabilities and potential market opportunities for Fermenta Biotech.