Granules to invest Rs 400 crore in backward integration and greenfield facility

Drug maker Granules India said it will invest ₹400 crore over next two years to backward integrate its key products and set up a greenfield formulation facility near Hyderabad. Krishna Prasad Chigurupati, the company's managing director, told ET the company has started work on end-to-end manufacturing of at least two key large-volume molecules.

Prasad said the backward integration will allow Granules to mitigate supply chain disruptions, volatility in prices and also increase expectations of environmental standards. Granules will spend about ₹250 crore on its backward integration and ₹150 crore on its greenfield formulation manufacturing unit in Genome Valley, near Hyderabad. The company is in the midst of capacity expansion which will take its tablet capacity from 23-24 billion to around 29 billion.