Looking at a big chance in contract manufacturing space, DRS Group has forayed into the pharmaceutical business with the launch of a new arm and high-tech plant at Medchal near Hyderabad.

The group's newly launched division, DRS Labs, will start its functioning with a capital of Rs 10 crore.

Besides, it is eyeing an Rs 50 crore turnover during the first year.

DRS Group Director A. K. Agarwal stated, "There is a huge demand in the contract manufacturing space and with Indian drug manufacturing sector gaining international prominence, we felt this was the right time to launch DRS Labs."

After getting all statutory permissions, DRS Labs will also receive licences of certain over the counter drugs that will be fabricated at the new plant.

The DRS group has interests in logistics, supply chain management, warehousing and education.

The company's 12-monthly turnover is over Rs 500 crore. (With Inputs from Agencies)