IOL plans to diversify its portfolio of specialized chemicals and APIs

9 Sep 2022 , 08:45 AM

IOL Chemicals & Pharmaceuticals, which expects to increase revenues over the next five years, announced on Wednesday that it is broadening its active pharmaceutical ingredient (API) and specialty chemicals portfolios and investing Rs300 crore in capital expenditures to establish a plant in western India.

The Ludhiana-based company, which is vertically integrated and produces the essential starting ingredient isobutyl benzene needed to make the medication, gets around 30% of its Rs2,216 crore in revenues from the commodity API ibuprofen. An old medication called ibuprofen is used to alleviate pain.

The Ebitda margins of IOL have been suffering as a result of the sharp decline in ibuprofen pricing, which had fallen from 31% in FY21 to 13% in FY22.

For the corporation to be authorized to sell APIs in regulated markets like the US and Europe, it also needs to submit 4-5 drug master files (DMFs). To enhance our market share for this product, the company is also boosting its ethyl acetate capacity by around 20% and from 100,000 metric tonnes annually.

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