Business
From Capsules to Complex APIs: Natural Capsules Limited’s Journey of Innovation, Sustainability, and AI-Driven Growth
Natural Capsules Limited (NCL) has transformed from an API distributor to a leading capsule manufacturer, driven by strategic market insights and a commitment to innovation. In 1993, recognizing a severe capsule shortage and high demand, NCL pivoted to manufacturing hard capsules, leveraging its deep industry connections and market research.
Today, the company is expanding into complex APIs while embracing cutting-edge technologies like AI and machine learning to enhance manufacturing precision and efficiency. Additionally, NCL is championing sustainability through initiatives like solar energy, zero-liquid discharge systems, and green chemistry. In this interview, we explore NCL’s strategic evolution, technological advancements, and its vision for sustainable pharmaceutical manufacturing.
We catch up with Sunil Mundra, Managing Director of NCL, to understand the future direction of the company, and the strategic plans it has in mind.
Natural Capsules Limited has evolved from API distribution to becoming a significant player in capsule manufacturing. What key market insights drove your strategic pivot in 1993, and how do these insights inform your current expansion into complex APIs?
During 1993 we had decided to get into manufacturing, and we selected pharma industry as we were already into API distribution and had known most of the pharma manufacturers in Southern India. We had evaluated various products like API, excipients, packaging material before finalising for capsules.
We chose not to venture into API/Excipient manufacturing as at that point of time, it appeared to us very risky and volatile business, packaging was a low-end market in those days. Our decision to go for capsules manufacturing was due to two major reasons, viz., huge shortage for capsules in that period, capsules being widely used as a dosage form.
During 1991 to 1995 period, there was huge shortage of capsules, as industry was licensed by Govt and DGTD licenses were applicable and hence there were very few players and it was seller`s market and hence profitability was good. Further we did a market survey amongst all our customers about the quantity of capsules they were buying and compared with the capacity that we planned and found that our proposed capacity was only 1/3rd of the purchase quantity of our regular customers. Both these factors gave us enough confidence to venture into manufacturing of Hard Capsules.
You’ve mentioned your interest in AI and machine learning. Could you share specific examples of how you envision these technologies transforming pharmaceutical manufacturing, particularly in achieving your goal of becoming one of the world’s largest capsule manufacturers?
Artificial Intelligence (AI) and Machine Learning (ML) are having huge relevance in pharma manufacturing as they have in many other industries. With advent of time, most of the machines have become high speed and are producing higher quantities. For smooth operations of these machines at higher speed, range of most of the process parameters and specifications of inputs have become narrower.
To achieve these close band of parameters and specifications, machines should correct quickly as the parameter go out of the limits. AI can help by learning from the past data and give predictive inputs to machines so that it can correct in time. ML can help by converting current data to intelligent inputs for self-correction of machines. Both these technologies will greatly help in improving the uptime of the machines, and quality of the produce.
We have been able to put these into practice in our facility and they have helped in improving our productivity by improving uptime of the machine and narrowing down the tolerances in process parameters which can cater to wider customer base.
As someone passionate about sustainable solutions, how are you balancing rapid business growth with environmental responsibility at NCL, and what innovations are you implementing to make pharmaceutical manufacturing more sustainable?
We at NCL and Natural BioGenex Private Limited (NBPL) have adopted several measures as part of our environmental responsibilities. We have introduced some of the innovative techniques like ICR (Instant Catalytic R..) in our effluent treatment in capsule facilities which gives out clean water which is recycled in our utilities. At API facility we have installed a ZLD facility and recycle 100% of the treated effluent internally.
We have also installed roof top solar power panels and Concentrated Solar Dishes to generate solar power and hot water which has helped us to reduce our carbon footprint. We have invested in a solar park and energy generated there is feeding our capsule plant at Bangalore to 100% of its` requirement.
At NBPL, we are working on to convert some of our chemical reactions based on batch process to flow, which drastically reduces the need for solvents, produces less effluents, and makes the process much safer. We are also working on to reduce use of hazardous chemicals by replacing them with other chemicals, and replace few chemical reactions by bio-conversion process. All these measures would make our environment safe and make the API manufacturing much more sustainable.
