Divis Laboratories has recently informed exchanges that the company entered into a long-term manufacturing and supply agreement with a global pharmaceutical company. This international agreement marks a strategic move by Divis to strengthen its presence in the custom synthesis segment.
Under the terms of the agreement, Divis Laboratories will be responsible for manufacturing and supplying advanced intermediates. The arrangement is expected to contribute meaningfully to the company’s revenue over the duration of the contract. While specific financial figures and the identity of the partner company remain confidential due to a non-disclosure agreement, the company has indicated that the expected returns are significant.
To support the operations under this agreement, Divis plans to undertake capacity expansion with an estimated investment of ₹650–750 crore. This capital expenditure will be financed through a phased capacity reservation advance that the customer is expected to pay, as per the terms of the agreement.
The company emphasized that the agreement is strictly commercial in nature, with no related party transactions involved. The collaboration is aimed at ensuring a reliable supply chain for the customer while allowing Divis Laboratories to deepen its footprint in the global custom manufacturing market.