Neuland Laboratories will invest Rs 126 crore to acquire 134 acres in Kakinada, with an option for 66 more acres, to support future expansion.

Neuland Laboratories will invest Rs 126 crore to acquire 134 acres in Kakinada. |

Mumbai: Hyderabad-based has approved capital expenditure of Rs 126 crore to acquire approximately 134 acres of land at Auro Industrial City in Kakinada, Andhra Pradesh, as it prepares for future expansion.

The company’s board approved the investment at its meeting held on September 7, 2026. The proposed expenditure covers the purchase of the land parcel and other related costs, Neuland Laboratories said in an exchange filing.

Additional Land Option

Neuland Laboratories has also secured the right of first refusal to purchase another contiguous parcel measuring approximately 66 acres at a later stage.

If exercises this right, its total landholding at the location could increase to about 200 acres. However, the filing did not disclose the potential cost of acquiring the additional parcel or specify a timeline for the transaction.

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The right of first refusal gives Neuland Laboratories the opportunity to purchase the adjoining land before it is offered to another prospective buyer, subject to the applicable terms.

Investment Through Internal Accruals

The entire Rs 126 crore investment will be financed through internal accruals, indicating that the company does not currently plan to raise debt or equity for the approved land acquisition.

Neuland Laboratories said the land would support its future expansion plans. However, it did not provide details about the facilities proposed to be developed at the site, the products to be manufactured or the eventual production capacity.

The company also marked disclosures relating to existing capacity, capacity utilisation, proposed capacity addition and the timeline for commissioning as “not applicable”.

Expansion Details Awaited

The acquisition provides Neuland Laboratories with a sizeable land base for long-term growth, while the adjoining 66-acre option offers further room to scale the proposed development.

The company has not disclosed a construction schedule, project implementation milestones or any additional capital expenditure that may be required to develop the property.

Further details are expected when the company finalises its expansion programme and determines the operational scope of the Kakinada site.

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