Divis Labs earmarks Rs 15 bn for capex as greefield Kakinada project stalls

The management said the brownfield expansion was taken up in order to cater to the increasing opportunities in generic and big pharma business

Active pharmaceutical ingredients (APIs) and drug intermediates maker Divis Laboratories Limited is creating additional capacities by spending as much as Rs 15 billion at its existing facilities in the next 15 months to more than make up for the delayed greenfield project plans in Kakinada.  

The company said it would be investing Rs 6 billion each at its Unit-2 of Vizag SEZ in Andhra Pradesh and Unit-1 of its Nalgonda SEZ in Telangana to build additional capacities, besides spending another Rs 3 billion for debottlenecking of the Unit-2 in Vizag.

The capacity expansion is expected to be completed by the end