Dr. Reddy’s Signs MoU With State of Louisiana

Dr. Reddy’s has signed a Memorandum of Understanding (MoU) with the state of Louisiana on 7th December 2009, to expand its Shreveport operations with incentives and support from state and local government.

Reportedly, the project aims to retain over 160 jobs while adding approximately 73 new jobs and represents up to $16.5m in capital investment. Louisiana Economic Development (LED) estimates this project to generate 184 indirect jobs, as well as $7.3m in new state tax revenues and $5m in new local tax revenues over the next ten years.

The company said that the combination of state and local incentives granted to secure the project is expected to be valued up to $9.2m over a period of ten years, based on performance triggers in this phase of the Dr. Reddy’s expansion plan and related efforts.

The 300,000-square-foot Shreveport facility is the producer of Silver Sulfadiazine Cream and the producer of Ibuprofen for the North American market. The phase of expansion will allow Dr. Reddy’s to support multiple new products at the site.

Amit Patel, senior vice president and head of North America operations for Dr. Reddy’s, said: “Our plans to expand the scope and scale of our Shreveport facility are driven by a combination of several factors – the strategic fit of the products and capabilities of the site with our corporate growth objectives, the work ethic of the people of North Louisiana, as well as the incentives put forth at both the state and local levels, amongst other considerations.”