IOL Chemicals and Pharma stock zooms 5% on commencement of commercial production of 'Paracetamol'

25 Apr 2022 , 12:48 PM

IOL Chemicals & Pharmaceuticals Ltd has informed that the Company has commenced the commercial production of 'Paracetamol' with installed capacity of 1800 MTPA along with backward integration of Para Amino Phenol (PAP) with effect from April 22, 2022.

The Company is manufacturing Paracetamol in its existing Unit No 4, which has been converted as multiproduct facility, with a cost of about Rs100 lakh whereas PAP is being manufactured in part of Unit No 9. The Company shall continue to use Unit 4 & Unit 9 for manufacturing other products as per market conditions.

Further, considering the present market scenario, the Company is in the process of enhancing the installed capacity for manufacturing the Paracetamol from 1800 MTPA to 3600 MTPA with a capex of about Rs25 crore, which is expected to be completed during the 3rd quarter of FY2023.

All the capex is being met through internal accruals only, said company in a regulatory filing.

The Paracetamol, also known as Acetaminophen, is an Active Pharma ingredient (API) that is used to treat fever and mild pain, whereas PAP is used as an intermediate to manufacture Paracetamol.

At around 12:44 PM, IOL Chemicals & Pharmaceuticals was trading at Rs478.65 per piece up by 5.15% on the BSE.