IOL Chem in expansion mode; to invest Rs 300 cr

Barnala, Punjab, March 15 (UNI) Punjab-based IOL Chemicals and Pharmaceuticals Ltd (IOLCPL) today said it will invest about Rs 300 crore for its proposed extension plan over the next one year, which will increase its turnover to Rs 800 crore by 2010-11.

''We will invest Rs 300 crore over the next one year for expansion of our business. Our turnover is expected to be to the tune of Rs 800 crore by 2010-11,'' company CMD Varinder Gupta told reporters here.

The expansion projects will be financed by term loans from financial institutions, banks, internal accruals and equity being contributed by the promoters and private placement to FII.

The expansion schemes are likely to be completed by February 2010.

The company has acquired 65 acres of land for its backward and forward integration project, consisting of expansion of the its capacity of Acetic Acid, Ethyl Acetate, Acetic Anhydride and Ibuprofen.

The company will also enter a new segment of proton pump inhibitors by undertaking the implementation of project to manufacture Rabiprazole, an anti-ulcer drug and its derivatives, Mr Gupta said.

''As Rabiprazole is going off-patent, we are entering into this new segment,'' Mr Gupta said.

IOLCPL also proposes to construct an additional captive power generation plant of 13 MW in addition to its existing four MW plant in the next one year, he added.

The turnover and profit of the company stood at Rs 231.71 crore and Rs 19.14 crore respectively during the year 2006-07.

UNI BJR SR AS1526