Dr Reddy's Laboratories, India's second largest drug-maker, is planning to invest around $100 million (around Rs 500 crore) as capital expenditure in the next financial year (2012-13) to expand its manufacturing capacity for meeting the increasing demand of pharmaceuticals products.
"Though it is very early to give exact figures, we expect capital expenditure for the next financial year (2012-13) to be around $100 million," said K Anji Reddy, chairman, Dr Reddy's Laboratories. "Significant portion of this investment will be in constructing manufacturing facilities."
The company is setting up a formulation manufacturing plant in Vizag and Biologics manufacturing facility in Hyderabad. Currently, the drug maker has 18 manufacturing facilities of which 14 are in India and rest are outside.
Of the total 18 manufacturing facilities, 9 are of formulations, 8 for Active Pharmaceutical Ingredient (API) and one for biologics. The company's capital expenditure stood at Rs 465 crore during the first nine months of current financial year and the management expects it to be in the range of $100 million-$150 million (Rs 500-750 crore) for the full year.
"We had said in the beginning of the current fiscal year (2011-12) that roughly we will spend $100-150 million as capital expenditure and in the first nine months of the current fiscal we have spent $94 million," said Reddy. "It will be in the expected range."
Hyderabad-based drug-maker, which posted net profit of Rs 513 crore at the end of December 2011, has presence in gastro-intestinal, cardiovascular, diabetology, oncology, pain management, anti-infective and pediatrics.
Major markets of the company include India, US, Russia and CIS (Commonwealth Independent States), Germany, UK, Venezuela, South Africa, Romania, and New Zealand.