Natural Capsules Limited has informed that the board of directors of the company at its meeting inter alia has transacted the following:

1. Reviewed ongoing project for expansion of existing EHGC capsule manufacturing capacity from 6.1 billion capsules to 8.36 billion capsules, by modification of existing machines for operating at a higher speed, and/or addition of capsule making machines. The company has achieved manufacturing capacity of 7.2 billion capsules under this project during last 18 months. It was further decided to enhance capacity from current 7.2 billion capsules to about 12.2 billion capsules at an estimated capital cost of Rs. 15.6 crores to be spent over the next 36 months. This expansion will be funded from the internal accruals and existing reserves.

2. Diversification into Active Pharmaceuticals Ingredients (API). This project would involve an investment in a greenfield API manufacturing facility to be established in Tumkur District, Karnataka. The facility will be constructed over three phases over the next five years. Phase 1 will be for the manufacture of steroids, phase 2 for hormones and phase 3 for oncology products. Phase 1 is estimated to cost Rs 23.5 Cr. and will be fully commissioned by March-2019.

3. This project will be partly funded by internal accruals and term loans from the bank. The installed capacity for phase 1 will be 15 KL, and on completion of phase 1, this project can generate a business of Rs.105 crores at a capacity utilization of 80 % in year 3 of full commercial

4. Production phase 2 and phase 3 will be implemented post the successful commissioning of phase 1. Further, the company has been allotted a land ad-measuring 5 acres by KIADB on a 99-year lease basis for this project.