Please find enclosed below the Budget reaction from IOL Chemicals and Pharmaceuticals Ltd. IOLCP is a BSE Listed company and it's turnover is near about 362cr. IOLCP is one of the largest manufacturers of industrial chemicals and bulk drugs with presence in over 52 countries across the world. The company is currently in a phase of expansion with an investment outlay of Rs.216 crore which would include capacity expansion for its various product lines, forward and backward integration and increase in cogeneration of power.
Also find attached the photograph of Mr. R.K.Thukral.
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Nikky Gupta
+91 9999886136
Quote from Mr. R.K.Thukral, Executive Director, IOL Chemicals & Pharmaceuticals Ltd.
Nothing impressive in the budget for the industry to cheer about
It is quite a disappointing budget for the pharmaceuticals and chemicals industries as we expected the government to provide stimulus to the industry and ensure its healthy growth. On the contrary, with no real sops to talk about, the budget has only added to the industry woes by increasing the Minimum Alternate Tax (MAT) to 15 per cent of book profits from 10%, which puts additional pressure on the industry.
We can see some thought in the initiative related to weighted deduction of 150% on expenditure incurred on in-house R&D to manufacturing businesses. For a company like ours, that makes heavy expenditure on R&D, this can surely help in increasing the profits.
The only other notable thing is that the customs duty on 10 specified life saving drugs/vaccine and their bulk drugs is reduced from 10% to 5% with Nil CVD (by way of excise duty exemption), This move will help improve upon export competitiveness and profits of pharma companies. Abolishing the Fringe Benefit Tax will also help in a small way to reduce the tax liability of companies across different industries.
Apart from this, we feel that there is nothing impressive in the budget for the industry to cheer about.
For more information on IOLCP, visit : http://www.iolcp.com
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