Divi’s Laboratories Ltd has entered into a long-term supply agreement with a global pharmaceutical company for the manufacture and delivery of advanced intermediates, the company said in a regulatory filing on Friday.

Though the identity of the global partner was not disclosed, Divi’s stated that it expects meaningful revenue contribution from the arrangement. To support this agreement and future growth, the company plans to invest between Rs 6.5 billion and Rs seven billion in capacity addition at its manufacturing facilities. The expansion will be funded entirely through internal accruals.

This move is seen as a strategic step towards strengthening Divi’s position in the global pharmaceutical supply chain and scaling up production capabilities. The firm, known for supplying active pharmaceutical ingredients and intermediates, has previously maintained long-standing partnerships with several multinational drug makers.

Shares of Divi’s Laboratories closed 2.07 per cent lower at Rs 5,638.35 apiece on the Bombay Stock Exchange.

Source: Press Trust of India