Mumbai: will invest Rs 495 crore in three expansion projects, including a new ibuprofen unit, a pharmaceutical formulations facility and a specialty chemicals plant.
All three projects will be funded through internal accruals, the company said in an exchange filing.
Ibuprofen Capacity To Rise 50 percent
is setting up a backward-integrated ibuprofen manufacturing unit at its Barnala site in Punjab. The project will add 6,000 metric tonnes per annum to its current capacity of 12,000 MTPA, taking the total to 18,000 MTPA.
This represents a 50 percent capacity increase. The existing facility is operating at 95 percent capacity utilisation.
The company will invest Rs 350 crore in the project and expects to commercialise the capacity by December 2027.
IOL Chemicals said the expansion would help it meet growing global demand, improve supply reliability and strengthen its position as an ibuprofen manufacturer.
New Formulations Business
The company has installed a pharmaceutical formulations facility at Barnala, marking its entry into contract development and manufacturing organisation services for formulations.
Built at a cost of about Rs 110 crore, the facility can manufacture nearly 1,500 million tablets annually or an equivalent volume of direct compressible grade products.
It will serve the long-term manufacturing needs of anchor customers in Europe. The unit has received a Good Manufacturing Practice compliance certificate from Hungary’s National Centre for Public Health and Pharmacy.
Commercial operations are expected to begin during the third quarter of FY27.
Specialty Chemicals Facility
IOL Chemicals is establishing a specialty chemicals facility under a long-term tolling arrangement with an unnamed global chemical company.
The company will invest Rs 35 crore in the project, scheduled for commercialisation during the third quarter of FY27.
The unit will manufacture and supply the product exclusively to the customer. IOL Chemicals said the arrangement should contribute materially to revenue after supplies begin while providing long-term demand and expanding its presence in specialty chemicals and contract manufacturing.