IOL Chemicals and Pharmaceuticals, formerly known as Industrial Organics Limited has announced that the company will invest around Rs 300 crore in its proposed extension plan during the next year.

The company has already acquired 65 acres of land for its backward and forward integration project.

Varinder Gupta, Chairman and Managing Director, IOL Chemicals said, "As the Rabiprazole is going off-patent, we are entering into this new segment and by investing Rs 300 crore to achieve a turnover of Rs 800 crore in the year 2010-11.”

Ludhiana-based, IOL Chemicals and Pharmaceuticals Limited manufactures and exports industrial chemicals and bulk drugs for use in various pharmaceutical applications.

The company also plans to set up a manufacturing facility for Rabiprazole, an anti ulcer drug, at a capital expenditure of Rs 75 crore.

Rabiprazole is used to treat conditions where the stomach produces too much acid, including ulcers, gastroesophageal reflux disease (GERD), and Zollinger-Ellison syndrome.

The company has announced a 170% increase in net profit at Rs 3.32 crore for the quarter to Sep. 2007. The sales increased by 89% to Rs 80.64 crore.