Novonesis to invest USD 705.2M in advanced enzyme production facility in India
The Patalganga expansion is expected to strengthen Novonesis’ supply network and support growing demand for biosolutions across emerging markets.
INDIA – Danish biosolutions and biotechnology company Novonesis will invest Rs 6,660 crore (USD 705.2M) to expand its facility at Patalganga in Maharashtra, India, with an advanced enzyme production facility expected to be fully operational by 2030.
The expansion will increase Novonesis’ production capacity and support rising demand for biosolutions across industries including biofuels, household care, food and beverages.
President and CEO Ester Baiget said the investment would support the company’s growth strategy and global customer base.
“This is an important step in executing our strategy and reflects our continued commitment to investing for sustainable growth. The expansion strengthens our ability to support customers around the world and enables us to continue creating long-term value for our shareholders,” Baiget said.
The Patalganga facility will become part of Novonesis’ global production network and bring the company closer to customers in emerging markets, particularly the Middle East, Africa, India and wider South Asia. The company expects these markets to grow faster than developed markets in the coming years.
Krishna Mohan Puvvada, Regional President, Middle East, India & Africa, said the investment would support the company’s long-term ambitions while strengthening India’s bioeconomy.
“This investment will not only support our long-term growth ambitions but also position us strongly to advance India’s growing bioeconomy,” Puvvada said.
He added that India’s launch of the BioE3 policy had marked transformative steps to unlock the economic, social and environmental potential of biosolutions.
Novonesis said the new facility would be designed to reduce water and energy consumption. Freshwater recycling will reduce the site’s freshwater requirements, while integrated heat pumps will lower the energy needed for operations.
The Patalganga expansion forms part of a wider programme of investments to strengthen Novonesis’ global production footprint. The company has also expanded facilities in Rayong, Thailand; Franklinton, North Carolina; Taicang, China; Araucaria, Brazil; and West Allis, Wisconsin.
The investments align with Novonesis’ previously communicated capital expenditure plans and growth strategy.
The company recently signed an agreement to acquire the remaining equity in Australian biotechnology company MicroBioGen, which specialises in high-performance yeast strains for industrial applications, particularly bioethanol production.
The transaction will see Novonesis acquire the remaining 77% stake, building on its initial investment in MicroBioGen in 2013 and a decade-long partnership that produced yeast technologies including the Innova series.
Novonesis said the Patalganga facility will strengthen its production capabilities while supporting customers across key emerging markets.
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