Cipla plans capex of up to Rs 1,500 cr; to tap markets
Mumbai: Leading pharma company Cipla Ltd
on Wednesday said it envisages a capital expenditure of up to Rs
1,500 crore for which it will tap the markets.
At its 73rd annual general meeting (AGM) here, Cipla
Chairman and Managing Director Y K Hamied said the company
envisages a capital expenditure of about Rs 500-600 crore in
the next two years and it will spend Rs 800 crore in the
He, however, said, "The company was looking to raise
funds from the capital markets at an appropriate time in the
near future, but had not yet decided on the (exact) quantum or
It is looking at options like issue of securities in
domestic/international markets through various instruments,
including equity shares or foreign currency convertible bonds
(FCCBs) convertible into equity shares of the company or
American Depository Receipts (ADRs) or Global Depository
Cipla has incurred a capital expenditure of nearly Rs
2,000 crore over the last three years
The company intends to use the funds to reduce short-
term debt raised to meet working capital requirements in the
past couple of years and also to fund some of its new projects
in the next two years.
With the proposed expansion plans, Cipla`s working capital
requirements would rise annually by about Rs 300 crore. It has
invested significantly in modern facilities.
The new facilities and upgrading of existing ones have to
keep pace with the growing demand for our high quality
medicines, Hameid said.
The company has invested Rs 300 crore in a new pharma
project in Sikkim, which has already supplied large quantities
of drug formulations to the domestic market. It is also
setting up a formulation unit in a special economic zone in
Indore at an estimated cost of over Rs 750 crore. This factory
complex will commence production in 2010.
It is setting up an active pharmaceutical ingredients
production facility at Bangalore and expanding its API units
in Vikhroli and Patalganga in Maharashtra.
However, the firm`s SEZ project at Kerim, Goa, where it
had proposed multiple manufacturing plants, is still stuck as
the state government passed a stop-work order in 2008 after
deciding to impose a statewide ban on SEZs.
Over the past five years, the company have had an
average growth of 20 per cent each year and doubled turnover
to Rs 5,000 crore in FY 09, Hameid said.
Cipla has over 7,000 product registrations in nearly
180 countries and provides a wide range of medications, which
include HIV/AIDS, malaria and respiratory disease.
More from India
More from World
More from Sports
More from Entertaiment
- Vadodara: Policemen seen dancing with bar girls
- PM Modi speaks at Golden Jubilee celebrations of poet Dinkar’s works
- Coal scam: Naveen Jindal, Madhu Koda and others get bail
- Zee Media Exclusive: Kangana, Madhavan talk about their film 'Tanu Weds Manu Returns'
- One year of Modi govt: Arun Jaitley addresses press conference
- DNA: Harmful chemicals found in Maggi, Nestle India still in denial mode
- ISIS executes Syrian fighter using anti-tank rocket launcher
- CM Kejriwal shortlists 39 'unwanted' IAS officers in Delhi
- Zee Media Exclusive interview with Congress leader Kamal Nath
- Columbia student takes rape-protest mattress to graduation
- Mumbai: One injured in shootout at Film City
- DNA: Modi-led NDA govt's hits and misses in one year
- Delhi: Car catches fire after crash, one dead
- Gujjars revive agitation for 5% quota in jobs, block rail track
- Manthan: Expert's tips to avoid stomach gas, constipation
- Jayalalithaa makes public appearance, meets Governor: As it happened
- IPL 2015, Qualifier 2: CSK vs RCB - As it happened...
- India to soon have its own space shuttle!
- Tanu Weds Manu Returns movie review: Brilliant execution, superb performance!
- Kejriwal slams notification on LG's powers, says Modi running Delhi govt through back door
- Wbbse.org 10th Madhyamik Pariksha Results 2015: West Bengal Board (wbresults.nic.in) Class 10th, WB MP Results 2015 to be announced today shortly
- Manohar Parrikar meets troops at Siachen base camp
- PM Narendra Modi graces Digvijay Singh's son wedding reception
- Rahul Gandhi to pressurise govt to act on one-rank-one-pension issue
- Businessman shot next to Amitabh Bachchan's shooting location in Mumbai Film City
- West Bengal Board (wbbse.org & wbresults.nic.in) Class 10th Madhyamik Pariksha (MP) Results 2015 to be announced today at 10 AM
- Rajasthan Board RBSE 12th Inter Results 2015: BSER Ajmer (rajeduboard.nic.in & rajresults.nic.in) Senior Secondary Class 12th Science & Commerce Exam Results 2015 to be declared today at 2 PM
- RBSE 12th Results 2015 (rajeduboard.nic.in & rajresults.nic.in): Rajasthan Board BSER Ajmer Senior Secondary Class 12th XII Intermediate Science & Commerce Exam Results 2015 to be declared today on May 22
- After land bill, net neutrality, Rahul Gandhi to fight for ex-servicemen now
- CBSE 12th Results 2015: CBSE Board Cbse.nic.in & cbseresults.nic class 12th XII board exam Results 2015 date announced