IOL Chemicals and Pharmaceuticals Ltd (IOLCP) is stepping up its growth ambitions with a Rs 495-crore expansion plan spanning Ibuprofen, contract manufacturing and specialty chemicals—funded entirely through internal accruals.
The company has lined up three strategic projects aimed at expanding its core manufacturing capacity, entering higher-value pharmaceutical services and securing long-term international business.
The biggest investment—Rs 350 crore—will go toward a new, fully backward-integrated Ibuprofen manufacturing unit at IOLCP’s Barnala, Punjab facility.
The project will add 6,000 metric tonnes per annum (MTPA) to the company’s existing 12,000 MTPA Ibuprofen capacity, taking total installed capacity to 18,000 MTPA. The existing capacity is currently operating at a high utilisation level of 95%.
IOLCP expects commercial production from the new Ibuprofen unit to begin by December 2027, as it looks to tap rising global demand and strengthen its position in the API market.
IOLCP is also making a strategic entry into the Contract Development and Manufacturing Organisation (CDMO) segment with a Rs 110-crore facility at Barnala.
The unit, with an installed capacity of around 1,500 million tablets annually or equivalent Direct Compressible Grade volume, is designed to extend the company’s existing API business into downstream pharmaceutical formulations.
The facility is focused on long-term contract manufacturing requirements of anchor customers in Europe. Importantly, it has already secured the Certificate of GMP Compliance of a Manufacturer from Hungary's National Centre for Public Health and Pharmacy (Directorate for Drug Inspection) following a successful regulatory audit.
Commercial operations for the CDMO business are scheduled to begin in Q3 FY2027.
The third initiative involves a Rs. 35-crore dedicated manufacturing facility for a specialty chemical product.
The unit will operate under an exclusive, long-term tolling arrangement with a leading international chemical manufacturer. IOLCP said the facility will supply the product directly to the client, creating a predictable revenue stream while expanding its presence in higher-margin contract manufacturing.
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