Neuland Laboratories announced that its board of directors approved capital expenditures totalling Rs 342 crore for capacity expansion at its facilities in Telangana.

Neuland Laboratories is investing significantly in expanding its manufacturing capacities at two key facilities in Telangana to meet growing demand.

The company plans to increase the capacity of its peptide synthesizers at its Unit 1 facility in Bonthapally Village, Gummadidala Mandal of Sangareddy District.

The existing capacity of 0.5 KL, with a utilization rate of 30 percent, will be expanded by an additional 6.37 KL by FY27.

The total investment for this expansion is Rs 254 crores, which will be financed through a mix of borrowings and internal accruals.

This capacity enhancement will support the development and commercial production of peptides for the GDS and CMS businesses

At its Unit 3 facility in Gaddapotharam Village, Jinnaram Mandal of Sangareddy District facility, Neuland Laboratories intends to add 52 KL to the existing 321 KL capacity. 

The current utilization stands at 40 percnet and the proposed capacity addition is expected to be completed within 15 to 18 months.