Partheeban said Caplin Steriles, the company’s US-focused arm, has already secured 40-plus product approvals, with active discussions underway to acquire another 10–11 products from third parties in the coming months. In parallel, the company is developing an organic R&D pipeline of over 60 products spanning injectables, ophthalmics, oncology, unit-dose and other complex segments.
“Overall, the pipeline for the next couple of years looks quite robust,” he said.
R&D spending to remain steady
Caplin Point currently spends about 5% of revenues on R&D, which is expensed each year. Partheeban said this level of investment is likely to continue for at least the next two years. “R&D is a critical pillar of our growth strategy. As a mid-sized company, business-model differentiation alone is not enough—we need the right product mix and technology,” he said.
Growth to moderate near term, pick up later
While the company has delivered consistent growth of around 15% in recent years, Partheeban said near-term growth may moderate as Caplin works off a larger base. “Over the next 18 months, growth is likely to be in the high single-digit to low double-digit range. Beyond FY27–FY28, the trajectory becomes far more exciting,” he said.
He attributed the longer-term optimism to multiple building blocks currently being put in place—entry into large Latin American markets such as Mexico, Chile and Brazil, expansion of the US business under its own label, deeper foray into complex molecules, and backward integration into APIs for oncology products.
US business gaining momentum
The US market is emerging as a key growth driver, with revenues growing at 25–30% year-on-year, albeit from a smaller base of around ₹360–400 crore. Partheeban said this momentum should continue for at least the next couple of years.To support this growth, Caplin Steriles is aggressively expanding capacity. “We currently operate about six sterile manufacturing lines. Over the next 12–18 months, this will increase to around 15 lines, placing us among the top three or four Indian exporters of injectables and sterile products to regulated markets,” he said.
Latin America focus shifts to larger markets
Latin America remains Caplin Point’s core geography, contributing about ₹1,600 crore in revenues, largely from smaller Central American and select South American markets. “As we enter larger markets like Mexico, Chile and Brazil, there is significant white space and headroom for growth,” Partheeban said.
Africa, which accounts for only 2–3% of revenues, is not a key expansion focus at this stage. “Our strategy is laser-focused on North and South America,” he added.
Acquisition strategy flexible, cash flows key
With ₹1,334 crore of cash on its balance sheet and potential acquisition appetite of up to ₹2,000 crore, Caplin Point is open to inorganic growth across multiple areas. “We are agnostic on the route—whether it is distribution, assets in Latin America that accelerate market entry, or even domestic businesses with strong cash flows,” Partheeban said.
He stressed that any acquisition must align with the company’s growth trajectory and deliver predictable cash generation.
Lower tax rate driven by offshore operations
Caplin Point’s effective tax rate of around 20% is partly due to its global manufacturing footprint. Partheeban explained that 35–40% of products are manufactured in China and routed through a Hong Kong subsidiary for Latin American markets, resulting in minimal tax outgo on those operations.
Overall, Partheeban said Caplin Point is focused on maintaining its hallmark consistency while building scale in regulated markets. “What we do over the next 18 months will define a very interesting growth phase from FY28 onwards,” he said.