Expansion plans include setting up of a new manufacturing unit to produce PPIs with expectation of a turnover of Rs.60 crore per annum
IOL Chemicals and Pharmaceuticals Limited (IOLCP), one of the largest producers of APIs, Ibuprofen and specialty chemicals in India, has announced its definitive plans to set up a new manufacturing plant to produce about 150 TPA of Proton Pump Inhibitors (PPIs). The company expects a turnover of about Rs. 60 Crore per annum from this initiative to diversify into new generic products and will raise the required capital from international markets by issuing USD 5 million, Zero Coupon Unsecured Foreign Currency Convertible Bonds (subject to an Option to issue an additional USD 10 million of such bonds), which are to be listed on the Luxembourg Stock Exchange (the “LuxSE”). The net proceeds from the issue are intended to be used by IOLCP for investment in the proposed PPI plant to produce anti-ulcer drugs; further expanding its existing manufacturing facilities.
Mr. RK Thukral, Executive Director, IOL Chemicals & Pharmaceuticals said, “The recent Healthcare Bill passed by US Senate has opened the doors of opportunities in the generic drugs market. We intend to capitalize upon our inherent strengths and are taking a quantum leap in our business progression with plans to set up a new manufacturing unit for PPIs, which have extremely strong demand world over. We will raise the required capital through the FCCB route and enhance our existing manufacturing and R&D capabilities.”
Proton pump inhibitors like Omeprazole, Pantoprazole, Rabeprazole, Lansoprazole and Esomeprazole help in blocking stomach acid secretion from the gastric parietal cells. They help in raising the gastric pH and relieving of symptoms and in the healing of GERD and peptic ulcer diseases, which are quite common all around the world.
“The current domestic demand for PPIs is estimated at around 1100 TPA. Considering that only 50% of the domestic demand is being met by the Indian manufacturers and the balance is being met with imports, there is a huge opportunity, which are aiming for,” added Mr. Thukral.
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IOLCP has also planned to set up another multi-purpose plant wherein, the company can manufacture alternative intermediate products depending upon the current demand and margins. IOLCP’s existing manufacturing capacities of Acetic Anhydride, Ethyl Acetate and Iso Butyl Benzene are also proposed to be further increased to cater to the ever growing demand. The company also aims to upgrade its R&D facilities so as to be at par with international companies and could be benchmarked globally.
The manufacturing process at the multi-purpose plant will use the same manufacturing facilities and machinery to produce different products like Iso Butyl Aceto Phenone (IBAP), Acetophenone, Benzophenone, p-methylacetophenone, Dicholoroactophenone, etc. at different times. These intermediate products are being used by Pharmaceuticals Industries and some of the key raw materials required for the production of these intermediates are already being manufactured by IOLCP itself.
About IOL Chemicals and Pharmaceuticals
Established in 1986, IOLCP, a public-listed company (BSE), is one of the largest manufacturers of APIs and specialty chemicals with presence in over 52 countries across the world. IOLCP manufactures and supplies APIs and speciality chemicals for use in various pharmaceutical, Textile, Packaging, Lamination, Pesticides, Food processing applications. Its product portfolio includes APIs, Ibuprofen, specialty chemicals such as ethyl acetate, acetic anhydride, Iso Butyl Benzene, Mono Chloro Acetic Acid and Acetyl Chloride and bulk chemicals such as Glacial Acetic acid.
IOLCP is currently in a phase of expansion with an investment outlay of Rs. 256 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 Argentina, Brazil, China, Denmark, Germany, Singapore, Hong Kong, Kenya, Malaysia, Peru, Egypt and many others. The company has strong business relationships with a number of prestigious clients such as Ranbaxy Labs, Aurbindo Pharma , Dr Reddy, DS Group, CIPLA, Uflex Industries, ITC Limited, ICI Paints, Asian Paints, Pidilite, Rallis India, Hindustan Polymide, Gujarat Super Phosphate, Avon Organics Ltd. etc. For more information on IOLCP, please visit http://www.iolcp.com
