Originally promoted by Y V Rao and his associate in 1987 as a private limited company, Nagarjuna Drugs set up a unit for the manufacture of bulk drugs like metronidazole and metronol sulphate, at Bonthapalli (Medak district), Andhra Pradesh. The unit was ready with the buildings and plant and machinery by Sep.'90. They could not commence trial production due to non-availability of raw materials and ethylene oxide gas for their products. Subsequently, V Sreedhar and his associates acquired the company in Mar.'92. Commercial production of norfloxacin, homoveratro nitrile (HVN) and homoveratryl amine (HVA) commenced in Jan.'94. In 1995, the company undertook a diversification project to manufacture drug intermediates like veratrol, verapamil, thiophene aceto nitrile (TAN) and chloromethyl naphthalene (CMN), to finance which, the company came out with a public issue in Feb.'95. The company has already produced TAN as a pilot project and exported to Europe. The company has increased its capacity of Chloroquine Phosphate and Dlichloroquinoline to 48 & 72 MT respectively.