February 20 (SeeNews) - Croatian food, beverages and drug producer Podravka [ZSE:PODR-R-A] said on Monday it will increase the capital of its drug making unit Belupo by 100 million kuna ($14.3 million/13.4 million euro) to 579 million kuna.
The increase will be made by input of the rights of claim which, as the sole shareholder, Podravka has based on retained profits of 100 million kuna, the company said in a filing to the Zagreb bourse.
"With this significant increase of the equity of our pharmaceutical division, we confirm the importance of this part of our business", Zvonimir Mrsic, chairman of Podravka's management board, said in the filing.
Belupo's capital was increased by more than 425 million kuna in the course of the last five years. During the same period of time, Podravka invested 1.5 billion kuna in new production plants, of which 500 million kuna was directed towards the construction of two new pharmaceutical facilities which are expected to commence operation in the moddle of 2017.
The commencement of new production processes will significantly contribute to GDP growth and rise in exports, Mrsic noted.
Podravka will employ around a hundred workers in its new production facilities.
(1 euro=7.44728 kuna)