IOL Chemicals to Invest ₹500 Crore in Ibuprofen Capacity Expansion, CDMO Formulations Facility and Specialty Chemicals Plant
IOL Chemicals and Pharmaceuticals has announced three capital projects involving a combined investment of approximately ₹500 crore. The initiatives cover expansion of Ibuprofen manufacturing capacity, entry into CDMO (Contract Development and Manufacturing Organisation) formulations, and setting up a new specialty chemicals facility under a long-term customer arrangement.
The largest share of the capex is directed toward Ibuprofen, where the company plans to add 6,000 MTPA of capacity, taking total installed capacity to 18,000 MTPA. The existing facility is currently operating at 90–95% utilisation. The new capacity will be fully backward integrated and is expected to be commissioned by December 2027, with utilisation projected to reach above 80% during FY28–FY29.
The second project is a CDMO formulations facility with a capacity of approximately 1,500 million tablets per year, or an equivalent volume of Direct Compressible Grade. The facility has received EU-GMP certification, with commercialisation expected in Q3 FY27. The project is driven by existing European API customers seeking to source finished tablet formulations from the company.
The third project is a dedicated specialty chemicals facility being developed under a long-term tolling arrangement with a global chemical company. The product involved is not currently part of IOL Chemicals' portfolio and has completed its development stage ahead of commercial production.
The projects are being funded through internal accruals, with around 30% of the total capex already incurred and the remainder planned across FY27 and FY28.
