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Neuland Labs Announces ₹342-Crore Investment in Telangana Expansion

Synopsis:

Neuland Laboratories Ltd commits ₹342 crore for Telangana unit expansions, enhancing peptide capacity from 0.5 KL to 6.37 KL and reactor capacity to 373 KL, supporting growth in generic drugs and CMS.

Neuland Laboratories Ltd news today

Neuland Laboratories Ltd has announced a ₹342-crore capital investment to expand its manufacturing facilities in Telangana. The investment focuses on increasing capacity at its Bonthapally (Unit 1) and Gaddapotharam (Unit 3) facilities, aimed at bolstering the company’s peptide synthesiser and reactor capabilities.

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NEULAND LAB LTD.

Trade

13766.95545.25 (4.12 %)

Updated - 22 January 2025
13958.50day high
DAY HIGH
13313.65day low
DAY LOW
10942
VOLUME (BSE)

Key Takeaways

  • Total Investment: ₹342 crore for Telangana expansions.

  • Unit 1: ₹254 crore for peptide capacity increase (0.5 KL to 6.37 KL).

  • Unit 3: ₹88 crore for reactor capacity (321 KL to 373 KL).

  • Funding: Combination of debt and internal accruals.

  • Timeline: Unit 1 by FY27; Unit 3 in 15-18 months.

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Investment Details by Unit

Facility

Project

Investment (₹ Crore)

Capacity Increase

Timeline

Funding

Unit 1 (Bonthapally)

Peptide Synthesiser Expansion

₹254

0.5 KL to 6.37 KL

By FY27

Debt and internal accruals

Unit 3 (Gaddapotharam)

Reactor Capacity Expansion

₹88

321 KL to 373 KL

15-18 months

Internal accruals

Enhancing Peptide and Reactor Capacities

The expansion at Unit 1 will focus on building a new peptide manufacturing block to scale production for generic drug substances (GDS) and custom manufacturing solutions (CMS). This will support the growing demand for peptides in the pharmaceutical industry.

Unit 3’s reactor capacity increase will enhance production volumes to meet the company’s operational requirements efficiently. Both projects align with Neuland’s growth strategy to strengthen its position in the global pharmaceutical market.

Financial and Market Implications

Neuland Laboratories Ltd aims to fund the ₹342-crore investment through internal accruals and borrowings, showcasing its financial planning. However, Neuland Laboratories Ltd share price dropped 4.56% on BSE, closing at ₹13,196.05 on January 21. This reflects market reactions to the capital expenditure announcement, possibly influenced by its funding strategy.

The ₹342-crore expansion by Neuland Laboratories Ltd in Telangana underscores its focus on innovation and capacity enhancement, ensuring future growth in the generic drug and CMS sectors. Investors will closely monitor the progress of these projects and their potential impact on Neuland Laboratories Ltd share price.

Also read: JSW Group Signs ₹3-Lakh Crore MoU with Maharashtra for Green Investments

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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