Sharing information with the company''s shareholders, the drug maker said the company has already acquired land for the project.

"The company is in the process of setting up a new API (active pharmaceutical ingredients) manufacturing unit at Dewas (MP) with an initial capital outlay of about Rs 250 crore," the Mumbai-based drug maker said adding it is currently in process of obtaining the environmental approvals.

Currently, Ipca Laboratories produces over 80 APIs at 12 production facilities, accounting for nearly 25 per of its turnover.

The company is also a leading exporter of APIs to over 70 countries.

During 2019-20, the company''s API and intermediate business recorded sales of Rs 1,173.13 crore as against Rs 884.56 crore in the previous financial year, thus registering a growth of 33 per cent.

Around, 79 per cent of the company''s API/intermediate business is currently generated from export markets.

The company also has a sizable presence in branded formulations in India with a portfolio of around 350 products.

The drug firm has presence across various international markets as well including the US, with a range of generic products.

For 2019-20, the total income of the company on a consolidated basis stood at Rs 4,715.71 crore, up 23 per cent from Rs 3,830.86 crore in the previous financial year.

Commenting on the business outlook, the company said that domestic pharmaceutical companies were focusing on global generic and API business, R&D activities, contract research and manufacturing alliances.

India is also fast emerging as a preferred manufacturing location for pharma products, thus the industry is poised for an accelerated growth in the coming years, it noted.

"However, poor public healthcare funding and infrastructure, low per capita consumption of medicines in developing and under-developed countries including India, currency fluctuations, regulatory issues, government mandated price controls, inflation and resultant all round increase in input costs are few causes of concern," it noted.

On regulatory issues, the company said the US Food and Drug Adminisration (USFDA) recently inspected the company''s formulations manufacturing unit situated at Piparia (Silvassa).

"This inspection resulted into issue of three observations in Form 483 by USFDA. Your company has submitted comprehensive response to these observations to the USFDA. The company is awaiting re-inspection by USFDA of its other two manufacturing facilities which are under import alert," it noted.