Jubilant Life Sciences to invest 550 crore in capital expenditure to meet demand

Jubilant Life Sciences has said it plans to invest about Rs 550 crore in capital expenditure in the current financial year to meet the increased demand in its businesses.

The company is present across three major business segments namely pharmaceuticals, life science ingredients and drug discovery solutions.

"To meet the increased demand in our businesses, we plan to invest about Rs 5,500 million in capital expenditure in 2018-19," Jubilant Life Sciences Chairman Shyam S Bhartia and Co-Chairman & MD Hari S Bhartia said in their address to shareholders.

In addition, the company plans to invest Rs 300 crore in research and development during the year, including Rs 150 crore in product development expenditure, they said in the company's annual report.

In Specialty Pharmaceuticals, the company expects all its key verticals to deliver strong growth during the year, the report said.

"Growth in Radiopharmaceuticals is expected to come from new products and execution of existing contracts," it said.

Full year impact of Triad business in the company's operations with break-even profitability will also help in growth in 2018-19 numbers, it said.

"Contract Manufacturing of sterile injectables business is expected to deliver better results due to healthy order book and new customer additions, supported by higher production and new capacities," the report said.

Higher sales of existing products and new capacities will drive growth in allergy therapy products, it said adding that

in Generics, the company expects higher volumes from new product launches and new markets.

"The Life Science Ingredients segment will benefit from better demand for existing products, new capacities from ongoing investments and de-bottlenecking initiatives, and launch of new products," it added.

(With inputs from agencies.)