Aarti Pharmalabs Limited
3 cylinder growth engine
Company Overview & Business Segments
Aarti Pharmalabs Limited (APL) is a demerged pharmaceutical arm of the Aarti Industries group (spun off in 2022) with a focus on active pharmaceutical ingredients (APIs), intermediates, and contract development & manufacturing (CDMO/CMO) services1. The company operates three main business segments, each contributing roughly one-third of revenues: Xanthine Derivatives, APIs & Intermediates, and CDMO/CMO services2.
APL is India’s largest producer of Xanthine derivatives (caffeine and related compounds) and in fact the only Indian manufacturer in this niche, holding an estimated 15–20% global market share in caffeine supply3.
It meets about 80% of India’s domestic caffeine demand4, making it a strategic supplier to beverage and pharma companies. The remaining two segments leverage Aarti’s chemical expertise in pharmaceuticals: the company has commercialized 55 APIs to date (with a strong presence in high-potency oncology and steroid APIs) and supplies over 500 customers across 50+ countries5.
The API & Intermediates division contributes ~44% of revenue, focused on chronic therapeutic areas like anti-diabetic and anti-cancer APIs, where APL has deep capabilities (including 50+ US DMFs filed and multiple EU CEP certifications)6. Meanwhile, the CDMO segment (13% of revenue in FY252) provides end-to-end custom synthesis for innovator pharma clients, from route development to commercial manufacturing.
APL’s CDMO business specializes in small-molecule NCEs and complex intermediates (including HPAPIs via capabilities like cryogenic reactions and hydrogenation), working with numerous global pharma innovators. This segment has been growing rapidly post-demerging, benefiting from a “China plus one” outsourcing trend and Aarti’s long track record in chemistry services7.
