G V Prasad, co-chairman and managing director of Hyderabad-based pharmaceutical company Dr Reddy's Laboratories Ltd (DRL), said that the company will invest Rs 700 crore for capacity development during the second half of the fiscal year.

This will bring the overall capital expenditure (capex) for the year to roughly Rs 1,400 crore, which is comparable to the amount invested during the first half of the fiscal year.

He made it clear that the majority of the funds would go into developing new facilities in India as well as increasing its manufacturing operations.

“Biologics is something we are expanding quite a bit, and some other portfolios as well," Prasad said.

The company had a capex of about Rs 1,100 crore in FY23, making it a 24% increase in FY24 from the year ago. In its Q2FY24 results, had announced that it will be looking to expand its India business through acquisitions and buyouts, licensing, and collaborations.

“The funding for that will be through separate means and will not be part of any of the capex plans of the company," he said, without disclosing the amount allocated.