NewsCorporate ActionsCoral Laboratories Approves ₹30 Crore Capacity Expansion at Dehradun PlantCoral Laboratories Approves ₹30 Crore Capacity Expansion at Dehradun Plant
Coral Laboratories Limited has approved a capacity expansion project at its Dehradun plant, aiming to triple ointment manufacturing capacity from 180,000 kgs to 540,000 kgs. The ₹30 crore investment, to be financed through bank overdraft and internal accruals, is expected to complete in 6 months. The expansion addresses growing demand in domestic and international markets, with current capacity utilization at 80%. The company aims to meet captive demand, support sales growth, and facilitate overall business expansion.
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Coral Laboratories Limited , a pharmaceutical company, has announced a significant capacity expansion project at its Dehradun plant. The Board of Directors approved the expansion plan on October 13, 2025, aiming to triple the ointment manufacturing capacity to meet growing demand in domestic and international markets.
Expansion Details
The capacity expansion project involves the following key aspects:
| Particulars | Current | Post-Expansion | Increase |
|---|---|---|---|
| Ointment Manufacturing Capacity | 180,000 kgs | 540,000 kgs | 360,000 kgs |
| Investment Required | - | ₹30 crores (approx.) | - |
| Project Timeline | - | 6 months | - |
| Capacity Utilization | ~80% | - | - |
Financial Implications and Strategy
The company plans to finance this ₹30 crore investment through a combination of bank overdraft facilities and internal accruals. This strategic move is expected to support Coral Laboratories' growth objectives in both domestic and international pharmaceutical markets.
Rationale Behind Expansion
According to the company's filing, the primary reasons for this capacity expansion are:
- Meeting captive demand
- Supporting sales growth in domestic and international markets
- Overall business expansion
The current plant operates at approximately 80% capacity utilization, indicating a need for additional manufacturing capabilities to meet future demand.
Regulatory Compliance
Coral Laboratories has duly informed the BSE Limited about this development, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
This capacity expansion represents a significant step for Coral Laboratories in strengthening its manufacturing capabilities and positioning itself for future growth in the pharmaceutical sector.
Historical Stock Returns for Coral Laboratories
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.83% | +0.08% | -2.27% | -20.52% | -44.63% | +30.67% |
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