Cipla said yesterday that its board of directors has approved the planned purchase of fellow Indian drugmaker Medtitab Specialities for Rs 133.35 crores, or around $28 million.

Meditab has small-to-mid-sized formulation-making facilities at multiple sites covering a range of therapeutic categories including HIV, cancer and asthma, and through the acquisition Cipla will be able to expand its active pharma ingredients and intermediates international business, the firm said in a statement to the stock exchange.

In addition, the company said investors will benefit from entry into the high growth Chinese domestic formulations market through the local manufacturing facility in China, as well as new business opportunities in Africa through Meditab’s production hub in Uganda.

The company has also announced that it will use Rs 1,000 crore to fuel the expansion of its existing facilities and infrastructure, including the establishment of a new research and development centre at Patalganga in Navi Mumbai, and the expansion of the Vikhroli R&D unit in Mumbai, reports India’s Business Standard.

Cipla also announced a special interim dividend Rs 2 per share for the current financial year, to mark its 75th birthday, but its stock in Bombay still closed down 2.63% as investors mulled over the news.