(Reuters) - Torrent Pharmaceuticals said on Friday it would buy more than 120 brands from Unichem Laboratories in India and Nepal, and its manufacturing plant at Sikkim.

The 36 billion rupee ($558 million) deal will be funded by internal accruals and bank borrowing, the Ahmedabad, Gujarat-based drugmaker said in a stock exchange filing.

The acquisition is on a going concern basis and is expected to deliver cost and revenue synergies in Torrent's branded drugs business in India, the company added.

The transaction will strengthen Torrent's position in cardiology, diabetology, gastro-intestinals and central nervous systems therapies, Torrent chairman Samir Mehta said.

The deal includes the purchase of the brand Unienzyme, allowing Torrent to enter the over-the-counter drugs market, as well as brands including Losar, Ampoxin and Telsar.

Under the acquisition, which is expected to close by the end of 2017, more than 3,000 Unichem employees will join Torrent.

(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by David Goodman and Alexander Smith)