New Delhi: Divis Laboratories Ltd plans to invest Rs 500 crore in Andhra Pradesh to set up its third manufacturing facility as it looks to augment its production capacity.
"The company is considering setting up a third manufacturing site to augment capacities besides derisking its business," Divis Laboratories said in a filing to the BSE.
The drug maker has made an application to the Andhra Pradesh government for allotment of land near Kakinada and is awaiting favourable response, it added.
"The company proposes to make an initial investment of Rs 500 crore on this facility," it said.
The company, which is primarily into manufacturing of active pharma ingredients (APIs) and intermediates, currently has two manufacturing facilities located at Hyderabad and Visakhapatnam, respectively.
The Hyderabad-based company on Saturday posted a marginal increase in its net profit at Rs 220.58 crore for the third quarter ended December as against Rs 219.02 crore in the same period of previous fiscal year.
Net sales of the company rose to Rs 788.08 crore for the third quarter as compared to Rs 687.41 crore during the same period of previous fiscal year.