Ipca scripts expansion, buyout plan

Ipca Laboratories has scripted a detailed expansion plan to cash in on the emerging opportunities in the international market.

The company plans to increase formulation capacity at existing units by investing Rs 100 crore besides setting up a greenfield unit for a proposed investment of around Rs 50 crore.

Further, the drug major is scouting for acquisitions in Europe and is also in talks to buy brands to further boost its portfolio. Ipca is also designing its foray into herbal medicines.

The company's inorganic growth plans, according to analysts, could entail an investment of close to Rs 50-80 crore.

While the drug maker would largely be funding its expansion through internal accruals, it is planning to raise around $15 million through external commercial borrowings.

A K Jain, executive director, told Business Standard, "Our capex plan for the current financial year is close to Rs 100 crore that will take care of the formulations capacity expansion essentially at our Silvassa unit. We are yet to finalise on the location for our new unit."

Besides Silvassa, the company has a bulk drugs and formulation units at Ratlam in Madhya Pradesh, a bulk drug facility at Indore in Madhya Pradesh and two formulations units at Kandla in Gujarat.