Vijayawada: Blue Jet Healthcare has initiated groundwork on its upcoming 103-acre greenfield site in Visakhapatnam, marking the first phase of its large-scale expansion into advanced specialty chemicals and pharmaceutical intermediates. The Phase-I capital outlay of Rs 1,000 crore will focus on establishing production blocks for Contrast Media, High-Intensity Sweeteners, and multipurpose chemistry units.

The development represents a significant step in the company’s strategy to expand its global CDMO (Contract Development and Manufacturing Organisation) footprint, supported by long-term supply commitments from international partners. Blue Jet plans to position the Vizag facility as a globally competitive, world-class CDMO hub, integrating innovation, capacity expansion, and sustainability.

In its analyst and investor call for the quarter and half year ended September 30, 2025, company executives confirmed that master planning for the Vizag site has been completed and that groundbreaking is scheduled for the coming quarter. Phase-I is expected to be fully operational by FY 2028, with capacity additions to follow in FY 2029 and beyond.

The company said the Vizag project would be developed in three phases, with the fourth multipurpose block designed to handle new chemistries, including peptide fragments for GLP analogues. The initiative aims to strengthen Blue Jet’s technical capabilities in niche therapeutic and nutraceutical segments.

Blue Jet Healthcare executives said they are seeing strong visibility in customer demand and that an anchor customer is already on board. “We have commitments from global customers backing this investment,” management stated.

The Vizag project is part of Blue Jet’s broader expansion program, which also includes R&D scaling in Hyderabad and a backward integration facility in Mahad. Together, these initiatives form the company’s long-term strategy to enhance supply chain resilience, expand export competitiveness, and drive sustainable growth in high-margin specialty segments.