Laurus Labs unveils API capacity expansion plans

Hyderabad-based Laurus Labs Ltd. is planning to Rs. 200-300 crore in capacity expansion over the next 12 months. “The production capacity of active pharmaceutical ingredients (APIs) will be augmented by expansion of existing units,” Mr. V. V. Ravi Kumar, the company’s Executive Director and Chief Financial Officer was quoted as saying in a Hindu BusinessLine report.

The company has lined up expansion of its units 3, 4 and 6 located in Visakhapatnam. Laurus now has eight operational units – six in Visakhapatnam and two in Hyderabad.

The Rs. 2,098-crore company derives a bulk of its revenue from APIs followed by ingredients, contract manufacturing and others. It has been stepping up its focus on the formulations business. “We are now stepping up focus on formulations and expect the revenue to grow considerably in a couple of years from now,” Mr. Ravi Kumar said.

Laurus Labs’ formulations Unit 2 successfully completed inspections from various countries like Tanzania, Uganda, Kenya, Zimbabwe and Malawi. It had also received Global fund ERP (Expert Review Panel) approval for Tenofovir, Lamivudine and Dolutegravir (TLD). “This will enable us to participate in WHO and in country tenders,” the CFO added.

By the end of the next fiscal, Laurus hopes to see “substantial” revenue from African markets. It has also been looking at the US, Europe and other emerging markets.