Companies

Granules India to invest ₹220 crore in US subsidiary

M Somasekhar Hyderabad | Updated on January 12, 2018

Funding will boost pharma R&D, manufacturing capacities of the facility



Granules India Ltd has announced an investment of $35 million (₹220 crore) to expand operations of its wholly owned subsidiary Granules Pharmaceuticals Inc in the US.

The pharmaceutical research & development and manufacturing capacities of the subsidiary will get a boost with the funding. At present, it is a 100,000-sq foot facility in the Chantilly area of Fairfax County, Virginia. The company conducts research and development to formulate products, and intends to manufacture products in the location as well.

Granules India, the Hyderabad-head quartered company, manufactures active pharmaceutical ingredients, pharmaceutical formulation intermediates and finished dosages. It intends to increase its global presence with a firm base and operations in the US.

The total investment by Granules in the US facility will be $50 million. Around 100 new jobs will be created as part of the expansion. The new workforce will be a mix of Americans and Indians, said Uma Chigurupati, Co-founder and Executive Director, responding to queries.

The company had entered the US in 2014 with an investment of $15 million to establish the subsidiary with around 75 employees. The place is a hub for life science industry and more than 400 foreign-owned firms have set up units for their US expansion, a release said.

In 2016, the US subsidiary entered into an agreement with USpharma to acquire 12.5 per cent stake. The pact allowed the company to select products which are under development by USpharma, which specialises in R&D and manufacturing of products, including controlled release drugs.

Through another joint venture, Granules India has entered into marketing over-the-counter products to retail chains in the US.

Granules India has been on an expansion mode in recent years, with three rounds of funding by the IFC.

Published on May 25, 2017

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