Neuland Labs board approves Rs 342 crore capital expenditure

Neuland Laboratories has recently informed exchanges that its Board has approved a ₹342 crore capital expenditure plan to boost its manufacturing capabilities and meet growing demand.

Key Projects:

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  1. Unit 1 – Peptide Synthesizers Expansion
    • Capacity: Increase from 0.5 KL to 6.87 KL.
    • Investment: ₹254 crore (including GST).
    • Funding: Borrowings and internal accruals.
    • Completion Target: FY27.
    • Purpose: Scale peptide manufacturing for CMS and GDS businesses.
  2. Unit 3 – Capacity Addition
    • Capacity: Additional 52 KL to existing 321 KL.
    • Investment: ₹88 crore (including GST).
    • Funding: Internal accruals.
    • Completion Target: 15-18 months.
    • Purpose: Address growing customer demand.

With 15 years of expertise in peptide technology, Neuland Labs is set to capitalize on niche opportunities by building a new multi-product peptide block at Unit 1. This expansion aligns with the company’s long-term growth strategy, enhancing capabilities for CMS and GDS customers.