The Hindu Business Line : Industrial Organics plans IPO

The number of chemical companies moving into the pharmaceutical business is on the rise. Ludhiana-based Industrial Organics Ltd plans to get aggressive in the active pharmaceutical ingredient (API) business next year.

However, the company that manufactures industrial chemicals such as acetic acid, ethyl acetate and acetic anhydride and API like Ibuprofen is expanding its existing capacities. The proposed expansion is being done at a cost of Rs 65 crore, for which it plans to come out with a public issue to raise about Rs 30 crore.

Mr Varinder Gupta, Chairman and Managing Director, told Business Line, "The expansion has been undertaken since the company has achieved a front line position in the domestic segment. It is now contemplating to widen its horizon through global penetration, which requires critical level of scalability to leverage the emerging opportunities. It is therefore moving ahead with a vision to develop global strategic alliances with quality leaders."

To focus on exports

Industrial Organics currently has a wide range of clients in the textile, agro-chemicals and pharmaceuticals industry. Mr Gupta said exports would be a focus area in the coming years. The company plans to mark its presence in about half-a-dozen markets abroad, including Sri Lanka, Bangladesh and China.

For the nine-month period ended December 31, 2005, the company posted net sales of Rs 102 crore. It hopes to cross the Rs 300-crore mark by 2008.

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