Project Financing for Pharmaceutical Company in India

Project finance for pharmaceutical companies is a smart way to fund both new (greenfield) and existing (brownfield) pharma projects. It lets businesses focus on what they do best while using external funds to support their goals. Hence, it is a good option for pharma businesses with new or existing project

Whether you want to expand production, create new medicines, or build modern facilities, project finance gives you the time to get the project up and running. Unlike regular loans that depend on your credit history, project finance focuses on the cash flow the project will generate. This makes it a practical solution to turn your ideas into reality without extra financial stress.

Key Features of Project Financing for Pharma Company

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Benefits of Project Finance for Pharmaceutical Companies

Project Finance offers pharmaceutical companies several advantages, especially when they need flexible funding. Here are some key benefits:

Cash flow-based funding ensures financial support for pharmaceutical projects.
Covers both Capex and Opex needs, including R&D and manufacturing.
The moratorium period allows repayment to begin after revenue generation.
You don’t need 100% collateral
Good interest rates make financing cost-effective for pharma ventures.
Long repayment tenure reduces financial burden during project phases.

Eligibility of Project Financing for Pharmaceutical Company

Eligibility criteria typically include:

The project must demonstrate strong market demand, such as generic drugs, biologics, or vaccines.
A well-established business history or proven expertise in the pharmaceutical sector
Technical and economic feasibility of the project.
Compliance with pharmaceutical standards, both local and global (e.g., GMP, FDA, and WHO certifications).
A DSCR of at least 1.25 or higher is typically preferred by lenders.
Detailed projections showcasing the project’s revenue generation capacity and profitability.

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Project Financing Documents for Pharmaceutical Company

KYC documents of promoters/directors (Aadhar, PAN, Passport, etc.)
Detailed Project Report
Estimated cost of the project with a breakdown of components
Audited financial statements of the business (Balance Sheet, Profit & Loss Statement, and Cash Flow Statements)
Income Tax Returns (ITRs) of the company and promoters
Bank statements for the last 12 months

Project Financing for Pharma Company with Terkar Capital

Project financing is essential for pharmaceutical companies to grow, innovate, and meet global healthcare demands. It provides funding for R&D, manufacturing expansion, and technology upgrades without affecting working capital.

Terkar Capital offers customized project financing solutions for the pharmaceutical industry’s dynamic landscape. Our expert team ensures a seamless process from feasibility assessment to disbursement, enabling businesses to focus on delivering healthcare excellence.

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Project Financing FAQs for Pharmaceutical Company

Generally - Setting up or expanding manufacturing plants, Research and development (R&D) for new drug formulations, Infrastructure development for drug testing and trials and Expansion of existing facilities or technology upgrades etc

Most lenders require collateral associated with the project. However, unsecured project financing may be available for companies with strong financials and a proven track record.

They assure lenders that the company complies with industry standards, reducing the risk associated with the project.

If delays occur, lenders may offer restructuring options, such as extending repayment tenure or adjusting interest rates, depending on the reasons for the delay.