Enhance Structure, Digitisation & Processes: Nikhil Kaushik

What was the idea behind starting this business?

Empty capsules are one of the principal modes of delivering drugs in the oral mode. Given the high technical expertise to manufacture empty capsules (high volume product with extremely tight tolerances in microns), there are very few competitors across the world making it an attractive industry.

What type of demands did you cater to during the pandemic?

During the first wave, we were open the next day after the first lockdown was announced since we were an essential industry. We have supported several State government entities such Kerala State Drugs & Pharmaceuticals, Karnataka Antibiotics & Pharmaceuticals, etc in addition to private companies like Hetero Drugs, Aristo Pharma, Alkem Labs, etc in their fight against Covid-19. Just to emphasise the point, we delivered almost 70 crore capsules during the first lockdown from March-end till May-end.

How is Fortcaps different from other existing capsule manufacturing players?

Fortcaps has always focussed on technology to improve our manufacturing process in increasing productivity and in delivering a higher quality to our customers. We were the first company to implement ML-based camera technology to inspect 100 per cent capsules in removing defects almost 4 to 5 years ago. Currently, this technology has become an industry standard in sorting defects.

What role does technology play in modern manufacturing?

Technology plays a very important role in improving the baseline quality levels for any manufacturing setup while increasing the productivity of the same. Whether it is in the form of various ERP solutions which improve the quality of data being processed or the use of technology in hardcore manufacturing that removes the requirement of human intervention which improves the productivity of the process. We have always believed that technology is the backbone of any industry be it a manufacturing industry or a service industry. Most importantly, we believe that technology creates a level playing field where small and medium sized manufacturers like Fortcaps can compete with the large giants in the industry on an equal footing.

What are the trends that have emerged in the manufacturing industry in 2022?

The biggest trend that has emerged is the use of collaborative softwares and technology to achieve remote operations in the manufacturing industry. Most factories have realised the key operations which require human presence and have moved all other operations to a remote/collaborative mode. This will be further enhanced going ahead.

How do you look at the manufacturing industry in the next 5 years?

There is a very popular report by BCG called the Factories of the Future wherein they mention that manufacturers should enhance production by making improvements in 3 dimensions – plant structure, plant digitisation and plant processes. I believe all manufacturing industries will continue to move in this direction where reliance on people will be limited at the design and innovation level and most repetitive processes in manufacturing will be automated to a great extent.

What are your company's growth and expansion plans?

We are planning to expand our capacity by 30 per cent in the next year and grow our revenues by 40 per cent over the next 2 years. Our revenue growth is expected to come from mainly 2 segments – supply to regulated markets like the US, EU, etc and supply of veg (HPMC) capsules.

Lastly, I would like to add that we are very excited by the possibilities that we see in the industry both in terms of growth due to higher spending by governments across the world on healthcare and the new doors that technology can open to companies like ours which will help us compete with the larger giants in the industry.