Welcure Drugs & Pharmaceuticals Ltd Secures Rs.517 Crore Global Sourcing Mandate

The company has signed this third-party sourcing and procurement services mandate with Thailand based Fortune Sagar Impex Company Limited

Highlights:

India, June 18, 2024: A reputed player in the Indian pharmaceutical space, Welcure Drugs & Pharmaceuticals Limited (BSE: 524661), has announced the execution of a definitive mandate with Thailand-based Fortune Sagar Impex Company Limited for third-party sourcing and procurement services. The mandate, valued at Rs. 517 crore, is structured under an Ex-Works model and represents a significant milestone in Welcure’s service-led growth strategy.

As per the mandate, Welcure Drugs & Pharmaceuticals Ltd will engage in sourcing and procurement of multiple finished-dosage SKUs. Built on fee-based model, the company will earn fixed 5% commission on the cost of goods. The estimated service income of Rs.25.85 crore is expected for FY 2025–26, substantially adding to Welcure’s revenue.

The mandate enhances Welcure’s fee-based portfolio without incremental balance-sheet exposure, making this a high-margin growth opportunity for the company. The Company will provide further updates, as and when successive call-offs are activated, in accordance with SEBI LODR.

The Rs.517 crore mandate involves execution scheduled on a call-off basis with the mobilisation of the initial lot targeted immediately upon fulfilment of the customary prefunding milestones. The engagement is set to conclude by September 30, 2026. The buyer, Fortune Sagar Impex Company Limited, Thailand, will be in-charge of responsibilities related to packaging, labelling, containerisation, insurance, freight and all destination-country regulatory clearances. The transaction is not a related-party arrangement and involves no promoter or group entity interest.

This sourcing mandate enables Welcure to scale its fee-based offerings globally and reinforce its positioning as a reliable partner for international pharmaceutical procurement.

Recently, the company conducted a Postal Ballot via remote e-voting from May 16 to June 14, 2025, seeking shareholder approval for appointment of Mr. Chintan Didawala Ganpat as Managing Director for a 5-year tenure. In the same meeting, resolution was passed for increasing the authorized share capital of the company—from ₹116 crore to ₹186 crore (i.e., 18.6 crore equity shares of ₹10 each).

For the financial year that ended on March 31, 2025, company reported Rs 26.45 crores net income with net profit of Rs 2.17 crores.

About Welcure Drugs & Pharmaceuticals Ltd:

Incorporated in 1992, Welcure Drugs & Pharmaceuticals Ltd is an established pharmaceutical company in India, engaged in the manufacture and trade of a wide range of healthcare formulations. With a focus on quality, compliance, and global integration, Welcure continues to expand its presence in both domestic and international markets.

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