Dr Reddy's Laboratories is planning to sell off its formulations plant located in Pondicherry. The unit came under DRL when the company acquired the Chennai-based American Remedies in 2001.
According to a source in the company, the Pondicherry unit was used for making a variety of formulations depending on the need of the company. "The facility does not meet our production requirements and the investments needed to upgrade the unit will make the plant economically unviable," the source said.
The company's proposal would be put before the shareholders for their approval at the AGM on August 25. Asked about the value of the unit, the source said it had not been evaluated as yet. The financial exercise would be done only after the AGM. DRL has six bulk units and seven formulations units, of which five are in India and two in UK. One formulations unit is exclusively meant for regulated markets.
Meanwhile, the company was in the process of setting up another formulations unit in Goa. The company is going to Goa since it offered fiscal benefits in addition to well-developed infrastructure and location advantage. The project is still at the initial stages.