Cipla plans Rs 900cr capex to set up mfg units

Drug major Cipla has lined up a capital expanditure plan of about Rs 900 crore over the next two years for modernising existing plants to international standards, and for setting up new plants at about 15 locations across the country.

Addressing the company's 71st annual general meeting in Mumbai today, chairman CYK Hamied,  said the company would invest about Rs 400 crore at its proposed pharmaceutical SEZ in Goa which will house many formulation and bulk drug manufacturing facilities.

The company has earmarked an expenditure of about Rs 350 crore for a bulk drug and formulation facility at Indore. The company is also planning to spend Rs 150 crore for developing formulation manufacturing facilities at Sikkim.

He said Cipla spent about Rs 450 crore on capital expenditure during the last year.

Cipla's share price went up 1.88% on the Bombay Stock Exchange (BSE) today to close at Rs 170.95.