IOL Chemicals & Pharmaceuticals has announced a comprehensive expansion plan valued at approximately ₹495 crore, covering new ibuprofen capacity, a contract development and manufacturing organisation (CDMO) facility, and a dedicated specialty chemicals unit.

The initiatives, disclosed on September 9, 2026, aim to strengthen the company's manufacturing capabilities and broaden its product portfolio. All projects are proposed to be funded through internal accruals.

Ibuprofen capacity expansion

The company is setting up a fully backward-integrated manufacturing unit for ibuprofen at its existing site in Barnala, Punjab. The new facility will add 6,000 MTPA of capacity, increasing the total installed capacity from 12,000 MTPA to 18,000 MTPA upon commissioning.

The expansion addresses growing global demand for ibuprofen and leverages the company's existing customer base. Current capacity utilization stands at 95%.

New CDMO facility

IOL Chemicals has installed a pharmaceutical formulation manufacturing facility in Barnala, diversifying into Contract Development and Manufacturing Organisation (CDMO) services. The facility has an installed capacity of approximately 1,500 million tablets per annum or equivalent volume of Direct Compressible Grade.

Key details include:

• Project cost: Approximately ₹110 crore
• Target market: Anchor customers in the European region
• Regulatory status: Received GMP Certificate from Hungary's National Centre for Public Health and Pharmacy
• Expected commercialization: Q3 FY27

This initiative is designed to cater to long-term contract manufacturing requirements, leveraging the company's regulatory compliance and technical expertise.

Specialty chemicals unit

The company is establishing a dedicated manufacturing facility for a specialty chemical product under a long-term tolling arrangement with a leading global chemical company. The project involves an estimated capital expenditure of approximately ₹35 crore.

The facility will manufacture and supply the product exclusively for the customer. Commercial supplies are expected to commence during Q3 FY27. The arrangement is projected to contribute materially to the company's revenue stream.

What the Numbers Show

The total investment of ₹495 crore represents a significant commitment to capacity expansion, with the ibuprofen plant accounting for roughly 71% of the total capital outlay (₹350 crore out of ₹495 crore). This concentration underscores ibuprofen as the primary growth driver, while the smaller investments in CDMO and specialty chemicals signal a strategic push into higher-value, service-oriented segments to diversify revenue streams beyond pure API manufacturing.

IOL Chemicals and Pharmaceuticals held its 39th Annual General Meeting on September 2, 2026. Shareholders approved the adoption of standalone and consolidated audited financial statements for FY26, alongside other key governance resolutions.

The company conducted the proceedings via Video Conferencing and Other Audio Visual Means in compliance with SEBI regulations and the Companies Act, 2013. Mr. Rajender Mohan Malla, Chairman of the Board, presided over the meeting after confirming the requisite quorum was present. Mr. Abhay Raj Singh, Senior Vice President and Company Secretary, welcomed participants including members, directors, statutory auditors, and the scrutinizer.

Resolutions Passed

Shareholders approved three ordinary resolutions during the meeting. The key decisions included:

The members received, considered, and adopted the standalone and consolidated audited financial statements for the financial year ended March 31, 2026. This included the reports of the Board of Directors and the auditors.

Governance and Audit Details

Mr. Kushal Kumar Rana retired by rotation and offered himself for re-appointment as a director. The shareholders approved his re-appointment. The company also ratified the remuneration of the Cost Auditor for the financial year ending March 31, 2027.

M/s. Ashwani & Associates served as Statutory Auditors, while M/s. B.K. Gupta & Associates acted as Secretarial Auditors. Both audit reports were free of qualifications, observations, or comments that could adversely affect the company’s functioning.

Voting Participation

Mr. Vinay Kohli, Partner at M/s. K.K. Kapoor & Associates, was appointed as the Scrutinizer to oversee the e-voting process. Remote e-voting was available from August 30, 2026, to September 1, 2026. Members who did not vote remotely could cast their votes electronically during the AGM or within 15 minutes after its conclusion.

As on the record date of August 26, 2026, the company had 130,410 shareholders. A total of 92 shareholders attended the meeting through video conferencing, comprising five promoters and promoter group members and 87 public shareholders. No shareholders attended in person or through proxy.

Document Inspection

Statutory registers and relevant documents required for the AGM were made available for electronic inspection. Members interested in inspecting these documents were instructed to contact the company via email with their name, demat account details, email ID, and mobile number.