Divi Laboratories Ltd (DLL), an exporter of bulk drug promoted by an NRI, Dr, Murali K Divi, is planning to expand its operations by setting up Rs.100-crore multi-purpose bulk drug manufacturing unit at Chippada village near Visakhapatnam. The company has already set up a unit at Lingogigudem, about 55 km from Hyderabad. The company has achieved an export turnover of Rs. 250 crore in the last fiscal. The new unit is proposed to be set up over 300 acres and would be completed within six months from the zero date. In the first phase, Rs. 40 crore would be invested and in the subsequent phases, the remaining Rs. 60 crore.

The new expansion programme of DLL in Vizag would provide a significant fillip to the proposed 'Pharma City' project to be implemented by the state government with private participation. Vizag and its neighbouring districts are already seen as a potential destination for major players in the pharma sector. Divi Labs will be the third company to plan new units in this region recently. Aurobindo Pharma and Andhra Organics have already started work on their projects in the Pydibhimavaram area in Srikakulam district.

DLL's Vizag unit will produce a variety of generic products, including napoxen, iopamidol and diltiasem, apart from therapeutic products such as refocoxib and eltoricoxib (anti-inflammatory), almotriptan and sumatriptan (anti-migraine) and pipisartan, candesartan and irbesartan (anti-hypertensive). The unit will require the usual raw materials like chemicals, acids, alkalis and solvent, with the fuel for steam boiler being either furnace oil or coal.