Hyderabad-based pharmaceutical company Dr Reddy’s Laboratories (DRL) is set to invest approx. Rs 700 crore for capacity expansion during the second half of this financial year (FY).

The expansion involves the biologics division of DRL as well as other portfolios. This will be similar to the amount invested during the first half of the FY and will take the total capital expenditure for the year to about Rs 1,400 crore. The company will utilise the capex largely for expanding its manufacturing facilities and some new facilities in India.

In Q2/FY24, the company announced that it will be looking to expand its India business through acquisitions and buyouts, licensing, and collaborations. In this regard, the funding will be done through separate means and will not be part of any of the capex plans of DRL. It has also launched its first digital product, Nerivio, for migraine care in India.

DRL has been developing a portfolio for biosimilars and biologics through development deals as well as expanding its facilities. The firm had a capex of about Rs 1,100 crore in FY23, making it a 24 percent increase in FY24 from the year ago.