Divi’s Laboratories Limited has signed a long-term manufacturing and supply agreement with a global pharmaceutical company. The company shared this development in a regulatory filing with both the National Stock Exchange (NSE) and BSE Limited.
Key Details of the Agreement
- The agreement covers the manufacture and supply of advanced intermediates.
- It is international in scope, indicating global delivery commitments.
- The deal does not include any upfront payment.
- Confidentiality terms prevent the disclosure of the partner’s name or specific commercial details.
Divi’s stated that it expects meaningful revenue contributions from this partnership over time.
Capacity Expansion Planned
To support this agreement, the company plans to invest between ₹650 crore and ₹700 crore in expanding its manufacturing capacity.
This investment will be entirely funded through internal accruals, and no external funding will be required.
Strategic Impact
According to the filing, the agreement is expected to:
- Ensure consistent supply to the partner company
- Help Divi’s expand its custom synthesis business
- Strengthen its role as a reliable global supplier in the pharma value chain
Not a Related Party Deal
Divi’s confirmed that this agreement does not fall under related party transactions.
There is no involvement of promoters or group companies in the deal.
This move marks another step in Divi’s strategy to scale up its contract manufacturing operations and deepen its global partnerships.
For investors, this agreement signals stable future earnings and continued capital investment in core operations.