Nagarjuna Agrichem (NACL) has earmarked Rs 350 crore for its expansion plans. It is planning to commence commercial production on these projects by January 2012.

Under the expansion plan, NACL plans to raise its production capacity by 9,000 tonne of which 1,000 tonne is likely to be added to its existing 8,000 tonne of manufacturing facility at Srikakulam and Ethakota facilities in Andhra Pradesh through de-bottlenecking. This apart, the company is setting up a 8,000 tonne capacity active ingredients facility at SEZ near Visakapatnam in Andhra Pradesh. Both de-bottlenecking and greenfield projects are expected to cost Rs 75 crore and Rs 250 crore respectively.

Besides, NACL is setting up a world class R&D center in Hyderabad at a cost of Rs 25 crore, in collaboration with Indian / overseas universities. This centre is expected to work on innovation to commercialisation, substitutes for generics, basic and applied research and contract research.

NACL is looking at various options including raising debt, QIP and private equity to fund the expansion. The promoters will also dilute five per cent of their holding to part-finance the project.

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