Divi’s Labs Signs Global Supply Deal, Plans ₹700 Crore Expansion

21 Apr 2025 , 01:04 PM

Divi’s Laboratories has signed a long-term manufacturing and supply agreement with a major global pharmaceutical firm, a strategic milestone in its custom synthesis business. The agreement is for the manufacturing and supply of advanced intermediates, a major growth driver for Divi’s Labs in the custom synthesis business.

In a regulatory filing to the stock exchanges, Divi’s stated that the partnership is global in scope and is expected to significantly contribute to the company’s revenue over the coming years.

While specific details such as the name of the partner and financial terms remain undisclosed due to confidentiality clauses, the company emphasized that the agreement is highly valuable and material. To facilitate the implementation of this agreement and expand its manufacturing capacity, Divi’s Laboratories will invest ₹650–₹700 crore in capacity expansion at its current facilities.

The investment will be entirely funded from internal accruals, reflecting Divi’s healthy financial position and capability to reinvest profits for expansion. As per the company, this strategic transaction will provide uninterrupted supply to the global partner, while enhancing Divi’s presence in the international custom synthesis market.

The expansion is part of Divi’s long-term strategy to be a top custom producer of high-value pharmaceutical intermediates and active pharmaceutical ingredients for international customers. The move should have a favorable effect on Divi’s revenue pipeline in the medium to long term and is a major addition for stakeholders and investors following pharma sector growth.