Divi's Labs Signs Long-term Pact to Supply Advanced Intermediates

Key Highlights:

• Divi’s inks long-term agreement with global pharma major for advanced intermediates.
• Estimated investment of ?650–750 crore to be funded through phasewise customer advances.
• Strengthens Divi’s custom synthesis business with assured revenue potential.

Divi's Laboratories Limited has entered into a long-term manufacturing and supply agreement with a leading global pharmaceuticals company to manufacture and supply advanced intermediates that consolidate Divi's position in the custom synthesis space.

While the name of the customer and exact quantitative terms are currently unavailable due to a confidentiality agreement, the company believes that it will receive a meaningful contribution to its revenue from the agreement.

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The terms of the agreement contain a large capacity expansion plan by Divi's, assuming capital expenditure of about ?650 to ?750 crore, which will be funded out of a capacity reservation advance supplied by the customer over the duration of the agreement in installments.

 Divi's stated that the agreement will provide the customer with the added benefit of an assured supply of critical intermediates, while allowing the company to continue embedding itself in the high-value custom synthesis sector—a strategic focus of increasing importance. The agreement demonstrates Divi's capacity to provide long-term and reliable solutions to global pharma clients, while strengthening its commitments to expanding its custom manufacturing capacity.