Indian pharma major Ranbaxy Laboratories is planning to set up research and manufacturing facilities in Hyderabad.

Though the details of the project are yet to be finalised, the company recently signed a memorandum of understanding with the state government in this regard, and the size of the investment is likely to be significant.

According the sources associated with the development, the company is likely to set up an ultra modern research lab at ICICI Knowledge park, and a manufacturing facility at Shapoorji & Pallonji Park, which are part of the Genome Valley project.

The pharma major is initially looking at acquiring about 50 acres of land for the proposed facilities.

"The MoU, however, is not limited to setting up facilities in those two centres. It has a wider scope. Ranbaxy is likely to firm up its investment plans in another three months," the sources added.

Spread over a 600-sq km area covering Shamirpet, Medchal, Kesara and Uppal mandals on the city outskirts, the Genome Valley project was unveiled by the state government in April 2001 as part of its Biotechnology Policy to provide world-class and investor-friendly environment to attract major corporates for setting up their biotechnology and healthcare-related research and development as well as manufacturing facilities.

Ranbaxy's proposed investment plans will mark the direct entry of the company into Hyderabad, which is known for its strengths in pharma sector as the 'Bulk Drug Capital of India.' Andhra Pradesh contributes about one-third to the turnover of the Indian pharma industry.