Danish biosolutions company Novonesis will invest €600 million (₹6,606 crore) to expand its Patalganga site in Maharashtra, India and build a state-of-the-art enzyme production facility, as part of its long-term strategy to increase global production capacity and meet growing demand for biosolutions.
The facility, expected to be fully operational by 2030, will produce enzymes for a range of industries, including biofuels, household care, food and beverages.
The investment is aimed at strengthening Novonesis’ production capacity, supply flexibility and resilience while bringing the company closer to customers in India, the Middle East and Africa. Novonesis said these markets are an increasingly important part of its business and are expected to grow faster than developed markets in the coming years.
“This is an important step in executing our strategy and reflects our continued commitment to investing for sustainable growth,” said Ester Baiget, President and CEO of Novonesis. “The expansion strengthens our ability to support customers around the world and enables us to continue creating long-term value for our shareholders.”
Strengthening global production capabilities
The Patalganga expansion is a key component of Novonesis’ plans to strengthen its global production footprint. The company said the new facility will improve its scale, operational resilience, efficiency and supply flexibility.
“As demand for biosolutions continues to grow across industries and regions, expanding our global production capacity is a priority,” said Anders Lund, Chief Operating Officer of Novonesis.
According to Lund, the expansion will also enable the company to serve customers in key growth markets more efficiently and support its long-term growth targets.
Patalganga is part of a broader series of production investments by Novonesis. The company has also expanded facilities in Rayong, Thailand; Franklinton, North Carolina; Taicang, China; Araucaria, Brazil; and West Allis, Wisconsin.
Focus on lower water and energy use
Novonesis said the new Patalganga facility will incorporate technologies designed to reduce water and energy consumption.
The site will use freshwater recycling to reduce the amount of water drawn from external sources. Integrated heat pumps will also help lower the energy required for operations.
The company said these measures will put the facility on a path toward reducing Scope 1 and Scope 2 emissions.
“Every facility we build should produce more with less. Patalganga brings together what we have learned across our production footprint and takes us another step toward zero-emission production,” Lund said.
The investment is aligned with Novonesis’ previously communicated capital expenditure plans and represents another major step in expanding its global manufacturing network for biosolutions.