#NSE0064– Best Pharmaceutical Company Hyderabad, India | Divis Pharma Industry (divislabs.com)
Divi’s Laboratories Ltd, established in 1990, is a prominent player in the pharmaceutical industry, specializing in the manufacturing and exportation of Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceutical ingredients. The company is renowned for producing a substantial volume of 30 large volume generic APIs, with production scales reaching tens to thousands of tons annually. These products are distributed to over 100 countries worldwide, underscoring Divi’s Laboratories’ extensive global reach and influence in the pharmaceutical market.
Additionally, Divi’s Laboratories is committed to innovation and development, with 10 APIs currently in various stages of research and development (R&D) and pilot scale production. This ongoing development pipeline reflects the company’s dedication to expanding its product portfolio it boasts six multi-purpose manufacturing facilities, which are crucial for the large-scale production of its diverse range of products.
The company’s product portfolio is extensive, encompassing approximately 160 different products. This diverse range includes various Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceutical ingredients, catering to a wide array of therapeutic categories and market needs. This extensive portfolio and the company’s robust infrastructure highlight Divi’s Laboratories’ capability to serve the global pharmaceutical market effectively and efficiently.
The ownership structure of Divi’s Laboratories Ltd is distributed among various types of shareholders, reflecting a balanced mix of investments from promoters, institutional investors, and the public. As of the latest data in March 2024:
- Promoters hold a 51.92% stake in the company.
- Foreign Institutional Investors (FIIs) have a 14.68% ownership.
- Domestic Institutional Investors (DIIs) possess a 22.10% stake.
- The Public holds an 11.19% share in the company.
Divi’s Laboratories Ltd is undertaking a significant capital expenditure (capex) project by establishing a third manufacturing site in Kakinada. The company plans to invest approximately Rs. 1,000 crores in this new facility. The development of this manufacturing site is a strategic move aimed at expanding the company’s production capacity to meet growing demand and support future growth.
The Kakinada project is expected to be ready for validation and regulatory approval within the next 2-3 years. Once operational, this facility will enhance Divi’s Laboratories’ ability to produce a broader range of products, ensuring compliance with regulatory standards and catering to both domestic and international markets. This substantial investment underscores the company’s commitment to scaling its operations and reinforcing its position in the global pharmaceutical industry.
In the fiscal year 2022 (FY22), Divi’s Laboratories Ltd demonstrated a strong global presence with exports accounting for approximately 90% of its total sales. The geographical distribution of these exports highlights the company’s extensive international reach:
- North America accounted for about 44% of the company’s sales. This region represents the largest market for Divi’s Laboratories, indicating a significant reliance on and integration with the North American pharmaceutical sector.
- Europe contributed to around 33% of the sales. This substantial share underscores the company’s solid foothold in the European market, which is known for its stringent regulatory standards.
- Asia (excluding India) made up about 9% of the sales, showing a growing presence in the Asian markets.
- The Rest of the World (ROW), which includes other global markets, constituted around 4% of the sales, reflecting the company’s efforts to diversify its market base beyond the major regions.
- Domestic Sales within India accounted for 10% of the total sales, indicating a balanced approach to serving both international and local markets.
This export-oriented strategy highlights Divi’s Laboratories’ ability to compete and thrive in highly regulated and competitive international markets, while also maintaining a significant presence in its home country.
Disclaimer-
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