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IOL Chemicals and Pharmaceuticals Ltd. plans to invest around ₹350 crore to expand its ibuprofen manufacturing capacity at its existing facility in Barnala, Punjab, the company said Wednesday.
The company is setting up a new fully backward-integrated unit with an annual capacity of 6,000 metric tonnes. The expansion will take IOL Chemicals’ total ibuprofen capacity to 18,000 MTPA from 12,000 MTPA currently, according to an exchange filing.
The project will be funded through internal accruals and is expected to be commissioned by December 2027.
IOL Chemicals said its existing ibuprofen facilities are operating at around 95% capacity. The new unit is aimed at meeting growing global demand and creating room for the company to pursue additional business in international markets.
The company said the added capacity will improve supply reliability and allow it to respond to changing customer requirements, while strengthening its position as a global ibuprofen supplier.
IOL Chemicals shares were trading 0.75% lower at ₹209.40 on Wednesday at 2:45 p.m. The stock has gained 24.7% over the past month and 154.7% so far this year.
IOL Chemicals enters drug contract manufacturing
Separately, IOL Chemicals has commissioned a pharmaceutical formulation plant at its Barnala site, marking its entry into contract development and manufacturing, or CDMO, for pharmaceutical formulations.
The facility can produce around 1.5 billion tablets a year, or equivalent volumes of Direct Compressible Grade, and was built at an estimated cost of ₹110 crore using internal accruals.
The plant is primarily intended to fulfil long-term contract manufacturing requirements from the company’s anchor customers in Europe. It has completed the required regulatory inspection and received a GMP compliance certificate from Hungary’s National Centre for Public Health and Pharmacy.
Commercial operations are expected to begin in the third quarter of fiscal 2027, the company said.
₹35 crore specialty chemicals plant
IOL Chemicals is also setting up a dedicated facility to manufacture specialty chemicals for a leading global chemical company under a long-term tolling arrangement.
The project involves an estimated investment of ₹35 crore and will be funded through internal accruals. Commercial production is expected to begin in the third quarter of fiscal 2027.
Under the agreement, IOL Chemicals will manufacture and supply the specialty chemical exclusively to the customer. The company did not disclose the customer’s identity or other commercial terms, citing confidentiality obligations.
IOL Chemicals said the arrangement should provide steady, long-term demand for the product and contribute materially to revenue once commercial supplies begin.
Also Read: DCB Bank in talks with PE, strategic investors to raise up to ₹1,000 crore
The company is setting up a new fully backward-integrated unit with an annual capacity of 6,000 metric tonnes. The expansion will take IOL Chemicals’ total ibuprofen capacity to 18,000 MTPA from 12,000 MTPA currently, according to an exchange filing.
The project will be funded through internal accruals and is expected to be commissioned by December 2027.
IOL Chemicals said its existing ibuprofen facilities are operating at around 95% capacity. The new unit is aimed at meeting growing global demand and creating room for the company to pursue additional business in international markets.
The company said the added capacity will improve supply reliability and allow it to respond to changing customer requirements, while strengthening its position as a global ibuprofen supplier.
IOL Chemicals shares were trading 0.75% lower at ₹209.40 on Wednesday at 2:45 p.m. The stock has gained 24.7% over the past month and 154.7% so far this year.
IOL Chemicals enters drug contract manufacturing
Separately, IOL Chemicals has commissioned a pharmaceutical formulation plant at its Barnala site, marking its entry into contract development and manufacturing, or CDMO, for pharmaceutical formulations.
The facility can produce around 1.5 billion tablets a year, or equivalent volumes of Direct Compressible Grade, and was built at an estimated cost of ₹110 crore using internal accruals.
The plant is primarily intended to fulfil long-term contract manufacturing requirements from the company’s anchor customers in Europe. It has completed the required regulatory inspection and received a GMP compliance certificate from Hungary’s National Centre for Public Health and Pharmacy.
Commercial operations are expected to begin in the third quarter of fiscal 2027, the company said.
₹35 crore specialty chemicals plant
IOL Chemicals is also setting up a dedicated facility to manufacture specialty chemicals for a leading global chemical company under a long-term tolling arrangement.
The project involves an estimated investment of ₹35 crore and will be funded through internal accruals. Commercial production is expected to begin in the third quarter of fiscal 2027.
Under the agreement, IOL Chemicals will manufacture and supply the specialty chemical exclusively to the customer. The company did not disclose the customer’s identity or other commercial terms, citing confidentiality obligations.
IOL Chemicals said the arrangement should provide steady, long-term demand for the product and contribute materially to revenue once commercial supplies begin.
Also Read: DCB Bank in talks with PE, strategic investors to raise up to ₹1,000 crore
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