Neuland Laboratories Board’s approval of this investment of Rs. 254 crore will enhance the company’s Peptide Synthesizer reactor capacity from 0.5 KL to 6.37 KL.

The company plans to fund this Capex through debt and internal accruals and expects the project to be completed by FY27. This peptide manufacturing block will be a multi-product facility servicing the needs of both CMS and GDS customers.

The Board has also approved an investment of Rs. 88 crore towards building an additional capacity of 52 KL in its Unit-3. This capacity is expected to come online in 15 to 18 months. These investments are in line with the company’s long-term growth strategy as articulated in past communications.

Neuland Laboratories Limited has invested in the niche technology area of Peptides over the last 15 years and has made progress at the Laboratory scale on various projects in the CMS & GDS businesses. Considering the business opportunities and to capitalize on current capabilities, the company is planning to build a new Peptide block with significant peptide manufacturing capacity at its Unit-1, allowing the business to scale.