Sun‍‌‍‍‌‍‌‍‍‌ Pharmaceutical Board Approves ₹3,000 Crore Investment for Capacity Expansion

Wednesday, December 3, 2025 – The board of Sun Pharma Laboratories, a wholly owned subsidiary of Sun Pharma, has given the green light to a significant capital expenditure of ₹3,000 crore for a new greenfield formulations manufacturing facility in Madhya Pradesh. 

The aim of this initiative is to deepen the company’s production capacity and increase its presence in Indian pharmaceutical manufacturing.

What the Investment Means for Future Growth

By launching a new plant, Sun Pharma is essentially predicting that the demand for formulations will keep rising in the long run. The move substantiates the company’s decision to focus on one single factory and grow its manufacturing activities; thus, the company would be able to lower the dependence on external suppliers, make the production process more efficient and introduce new products or increase production of existing ones. This investment decision has attracted a lot of attention from investors again.

Stock Performance & Investor Confidence

After the news, Sun Pharma stocks were in the spotlight on the stock exchanges. As of 11:49 am IST, the stocks were down 0.37% trading in red at ₹1,792.50. The upscaling program is considered a prudent strategic step by shareholders; thus, the company might be able to strengthen its position in the generics and formulations market. 

The stock has surged by more than 15% in the past 3 months. The P/E ratio of the company is 41.15 compared to the industrial average of 33.36. 

Broader‍‌‍‍‌‍‌‍‍‌ Strategic Push

Sun Pharma is expanding its capacity not just by increasing its production volume, but also by improving its product mix. The company’s changes and initiatives are a strategic move into specialty drugs, innovative biologics, and global markets. In FY26, the company is investing in specialty / patented products.

To signal its move to capture the higher-margin segments, the company has recently introduced a biologic therapy for psoriasis in India. The increased manufacturing capacity will be used for both generics and specialty portfolios; thus, Sun Pharma will be able to depend on market demand and regulatory approvals for its ‍‌‍‍‌‍‌‍‍‌flexibility.

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