Dr Reddy’s lines up Rs 1,500 crore capex to focus on biosimilars and injectables
The drug major also plans to utilise the capital for adding capacities to existing plants, firm up R&D activities and further invest in digitisation projects
Dr Reddy’s Laboratories has earmarked a capex of around Rs 1,500 crore for FY23 with major part of it slated to go into building capacities for its biosimilar and injectable businesses, according to Chief Financial Officer (CFO) Parag Agarwal.
The drug major also plans to utilise the capital for adding capacities to the existing plants, firm up R&D activities and further invest in digitisation projects.
“The capex for the full year is likely to be around Rs 1,500 crore in that range, and a lot of this capex is towards building capacity for our biosimilar business and for our injectable business,” the CFO said in an analyst call.
He was replying to a query about the company’s capex plans for ongoing financial year.
“When we say capex, obviously, it is not all going into building new plants. So, there will be several additions to existing plants, there will be maintenance capex, there will be capex on digitalisation projects, on R&D facility. So, it is all put together,” Amit Agarwal, Head, Investor Relations, Dr Reddy’s Laboratories, said.
Elaborating on the overall strategies, Erez Israeli, CEO, Dr Reddy’s Laboratories, said the company’s R&D is focussing on creating “as much as possible on differentiated products, on biosimilars, on products that have bigger potential.”
“So, we are trying to target not 30-40 products per year, but rather maybe a