Fredun Pharma raising ₹153 crores
The company's vertical integration from being a pharmaceuticals manufacturer to growing own consumer brands finds investor backing.
Fredun Pharmaceuticals Limited (BSE: 539730), a ₹500 crore revenue pharmaceuticals-to-consumer company, announced that its Board of Directors has approved a preferential issue of equity shares and convertible warrants totaling approximately ₹153 crores at an issue price of ₹1,250 per share.
Notable investors, including tal64 syndicate members, are participating in the preferential issue.
Investor Participation
The preferential issue attracted participation from prominent investors such as Alchemy Capital Management led by Lasith Sanghvi, SI Investments led by Karthik Iyer, NAV Capital Emerging Star Fund led by Vineet Arora, Capri Global Holdings, well-known families, and the company’s promoters, demonstrating strong confidence in FPL’s long-term vision. Read the BSE update and full list here.
Strategic Capital Deployment
The funds raised will support FPL’s aggressive expansion across its consumer brands portfolio. The company projects reaching ₹900 crores within four years. Fredun commented:
“We are at a critical juncture—we are approaching that moment where our scale economies will truly be shared with all stakeholders, and I felt this was the appropriate time to infuse our balance sheet with serious capital to compound hereon.”
Building Dependencies, Not Just Sales
Fredun, who joined the business at age 20 when revenues were ₹3 crores, has transformed FPL into an almost 400,000 square feet manufacturing and warehousing company.
The company’s philosophy centers on creating deep market dependencies rather than transactional relationships. Fredun explains:
“Our strategy has always been about leveraging economies of scale—building infrastructure that makes clients reliant on our capabilities while keeping prices competitive enough that switching becomes economically impractical.”
“We’ve willingly sacrificed short-term profits to establish these dependencies. Once you reach true scale, the economics change significantly. We’re now at the point where our investments in manufacturing capacity, R&D, and market development are starting to compound.”
Diversified Growth Strategy
The capital infusion will accelerate key initiatives:
Consumer Brand Growth: After spending more than a decade purely focused on building manufacturing capabilities and research, FPL finally decided to launch its own brands in the last couple of years. The capital raised will be invested in building markets for these brands—marketing, distribution, sales, and team.
Clinical Innovation: The company maintains 39 research scientists and is the only Indian company with double-blinded nutraceutical studies.
Manufacturing Excellence
FPL’s current capacity enables the simultaneous production of:
4 crore tablets per day
1 crore capsules per day
22 tons of DC granules per day
250,000 tubes of ointment per day
160,000 lotion/liquid bottles per day
1,700 SKUs across 27 therapeutic ranges
“We’ve built something that cannot be replicated easily—not just in infrastructure, but in time invested and relationships cultivated over three decades,” Fredun noted.
“While others can copy our products or facilities, they cannot replicate the compound effect of time.”
About Fredun Pharmaceuticals Limited
Founded in 1994, Fredun Pharmaceuticals Limited is an integrated pharmaceutical-to-consumer company. With operations across 52 countries, FPL combines three decades of manufacturing expertise with innovative R&D to deliver high-quality healthcare solutions.
Read the story of Fredun Pharmaceuticals here:
Safe Harbor Statement: This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected.
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