Unichem Labs earmarks Rs 120 cr for capex in FY'12

Unichem Laboratories has earmarked Rs 120 crore for capital expenditure plans in the current financial year, including the establishment of a new SEZ formulations plant and an R&D centre.

"Approximately Rs 120 crore would be invested in capex (capital expenditure) in FY'12, of which Rs 40 crore would be spent for the formulations plant at the SEZ, Pithampur, and Rs 48 crore for an R&D centre and the balance for normal capex activities," Unichem Laboratories Chief Financial Officer Rakesh Parikh told PTI.

The new research and development (R&D) facility at Goa would come up in the vicinity of the existing plant.

"The company has purchased additional land at Goa adjacent to the existing plant to build new research centre and for future manufacturing expansions," he said, adding that construction activities would commence shortly.

Recently, company Chairman Prakash A Mody informed shareholders at the annual general meeting of the company that modernisation of two plants in Baddi has been completed and these would be utilised for contractual supplies to regulated markets.

The chairman also informed the members that the company has streamlined its formulations business into seven divisions. Shares of Unichem Laboratories were trading at Rs 142.50 on the BSE, down 2.59 per cent from their previous close.