- IOL Chemicals and Pharmaceuticals is setting up a new Ibuprofen manufacturing unit at Barnala, Punjab, with an annual capacity of 6,000 MT, increasing its total Ibuprofen capacity to 18,000 MT.
- The company is also entering the pharmaceutical formulations CDMO business and establishing a dedicated specialty chemicals facility, with investments of approximately $11.6 million and $3.7 million, respectively.
IOL Chemicals and Pharmaceuticals is expanding its manufacturing operations through three initiatives at its existing site in Barnala, Punjab. The projects include a new backward-integrated Ibuprofen manufacturing unit, a pharmaceutical formulations CDMO facility and a dedicated specialty chemicals manufacturing facility under a long-term tolling arrangement.
The new Ibuprofen unit will have an installed capacity of 6,000 MT per year, taking IOL Chemicals’ total Ibuprofen capacity from 12,000 MT to 18,000 MT annually upon commissioning. The project has an estimated cost of approximately ₹350 crore ($36.8 million) and will be funded through internal accruals.
The company has also installed a pharmaceutical formulation manufacturing facility with an annual capacity of approximately 1,500 million tablets, or equivalent volume of Direct Compressible Grade. The facility represents IOL Chemicals’ entry into pharmaceutical formulations CDMO and was established at an estimated cost of approximately ₹110 crore ($11.6 million), funded entirely through internal accruals. The business is primarily intended to meet the long-term contract manufacturing requirements of the company’s anchor customers in Europe and is expected to be commercialized during Q3 FY 2027.
The formulations facility has completed the requisite regulatory inspection and received a GMP Certificate from Hungary’s National Centre for Public Health and Pharmacy, Directorate for Drug Inspection. IOL Chemicals said the new CDMO business is a customer-led extension of its existing API operations and is intended to create additional opportunities across the pharmaceutical value chain.
Separately, IOL Chemicals is establishing a dedicated specialty chemicals manufacturing facility for a global chemical company under a long-term tolling arrangement. The project has an estimated capital expenditure of approximately ₹35 crore ($3.7 million) and will be funded through internal accruals. The facility is expected to be commercialized during Q3 FY 2027 and will be dedicated to fulfilling the customer’s long-term requirements under the tolling arrangement.
