IOL Chemicals & Pharmaceuticals, which expects to increase revenues over the next five years, announced that it is broadening its active pharmaceutical ingredient (API) and specialty chemicals portfolios and investing $300 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 isobutylbenzene needed to make the medication, gets around 30% of its 2,216 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.
