IOL Chemicals and Pharmaceuticals Limited (IOLCP), one of the largest producers of bulk chemicals, Intermediate specially chemicals and APIs in India, has announced that it has been accorded the coveted status of Star Export House in accordance with the provisions of the Foreign Trade Policy, 2004-2009 by the Ministry of Commerce and Industry, Department of Commerce, Government of India, which makes the company eligible for many privileges that will help enhance its business and exports revenues.
According to Mr. N K Pundir, Vice President (Commercial), IOL Chemicals and Pharmaceuticals Limited, “It is a privilege for us to be accorded with the status of Star Export House by the Honourable Ministry of Commerce and Industry. IOLCP aims to further strengthen its exports revenue in the coming few years through aggressive expansion. We have an extremely exciting path lying ahead of us as we prepare to ramp up our manufacturing capacity for various products and exports to many new countries around the world.”
The status of Star Export House is conferred to export companies that have a total FOB/FOR Value of Rs.100 Crore during current plus previous 3 years taken together. IOLCP's earning in Foreign Exchange, calculated on FOB value, during the year 2007-08 was more than Rs. 43 crore and was over Rs. 21 crore in the preceding year.
As a Star Export House, IOLCP is now eligible for following privileges:
- Authorisation and Customs clearances for both imports and exports on self-declaration basis;
- Fixation of Input-Output norms on priority within 60 days;
- Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
- 100% retention of foreign exchange in EEFC account;
- Enhancement in normal repatriation period from 180 days to 360 days;
- Exemption from furnishing of Bank Guarantee in Schemes under FTP; and permitted to establish Export Warehouses, as per DoR guidelines.
IOLCP is taking big strides in its endeavor to raise its exports revenue and had recently received many other coveted certifications for exports of its APIs ; Ibuprofen, to various countries. These certifications include Accreditation Certificate of Foreign Drug Manufacture from Ministry of Health, Labor and Welfare, Japan, and Certificate of Pharmaceutical Product (COPP) from Director, Health & Family Welfare, Punjab conforming to the WHO guidelines, which certifies IOLCP’s Ibuprofen as an Active Pharmaceuticals Ingredient (API) fit to be exported to other countries from India. IOLCP has also received DMF acknowledgment for Ibuprofen from Food & Drug Administration, USA.
The production capacity of Ibuprofen has been the stronghold of IOLCP’s pharmaceutical operations and the company has recently boosted its Ibuprofen plant capacity to 3600 TPA from 1800 TPA. The company further aims to expand the capacity to 6000 TPA to cater to the new geographical markets abroad including Japan, Korea, Taiwan and few states of the USA as it has received coveted certifications for exports of Ibuprofen to various countries.
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IOLCP already exports its various products to many countries across the world including Argentina, Brazil, China, Denmark, Germany, Singapore, Hong Kong, Kenya, Malaysia, Peru, Egypt etc.
IOLCP plans to hire new employees to add on to its existing workforce. IOLCP’s new employees will primarily take care of the additional work responsibilities arising due to the Rs.216 crore worth capacity expansion plans for its various product lines including its most successful pharma product IBUPROFEN, forward and backward integration plans and an increase in cogeneration of power for its captive use.
As part of its Backward Integration plan, IOLCP is going to commence a new plant of Isobutyl Benzene (IBB) having annual capacity of 6000 MT to ensure ready availability of the most important raw material of Ibuprofen. The commercial production in this plant is expected to commence within a couple of months. As part of its Forward Integration plan, IOLCP will add two more products i.e. Mono Chloro Acetic Acid(MCA) with a capacity of 6600 TPA and Acetyl Chloride with a capacity of 4800 TPA, using Acetic Anhydride and Acetic Acid as a raw material.
IOLCP has also planned for installation of new manufacturing facilities for the following PPIs: Rabeprazole, Lansoprazole, Omeprazole, Pantoprazole and Esomeprazole. With annual installed capacity of 360 MT, the commercial production is expected to start within next few months. These PPIs have various applications, which include:
- Bind to Proton Pump and Prevent it from Producing Acid in to the Stomach.
- Usage in Treatment of Variety of Gastric Ailments.
- Rabiprazole is used to treat conditions where the stomach produces too much acid, including ulcers, gastroesophageal reflux disease (GERD), and Zollinger-Ellison syndrome.
IOLCP also plans to increase the production capacity of its bulk chemical; Acetic Acid from 50000 TPA to 75000 TPA of its intermediate specialty chemicals ; Ethyl Acetate from 33000 TPA to 36000 TPA and that of Acetic Anhydride from 12000 TPA to 18000 TPA.
To effectively meet its enhanced energy requirement and to become more self-reliant, IOLCP is also constructing a new captive co-generation plant with additional capacity of 13 MW in addition to the existing cogeneration plant of 4 MW. The plant is expected to be commissioned by the end of February 2010 and will generate a total of 17MW of power for exclusive consumption by IOLCP’s manufacturing facilities.
About IOL Chemicals and Pharmaceuticals Limited
Established in 1986, IOLCP, a public-listed company (BSE), is one of the largest manufacturers of industrial chemicals and bulk drugs with presence in over 52 countries across the world. IOLCP manufactures and supplies Industrial Chemicals and Bulk Drugs for use in various pharmaceutical applications. Its product portfolio includes industrial chemicals, industrial organic chemicals such as acetic acid, glacial acetic acid, ethyl acetate, acetic anhydride and bulk drugs like ibuprofen.
The turnover of IOLCP in the year 2007-2008 was Rs.361.35 crore and the company is currently in a phase of expansion with an investment outlay of Rs.216 crore which would include capacity expansion for its various product lines, forward and backward integration and increase in cogeneration of power.
IOLCP's overseas customers are spread out across several countries including Bangladesh, Thailand, UAE, Syria, Singapore, Hong Kong, Pakistan, Egypt and many others. The company has strong business relationships with a number of prestigious clients such as Ranbaxy Labs, Dr Reddy, DS Group, CIPLA, Uflex Industries, ITC Limited, ICI Paints, Asian Paints, Pidilite, Rallis India, Hindustan Polymide, Gujarat Super Phosphate, and Avon Organics Ltd. etc. For more information on IOLCP, please visit http://www.iolcp.com