Neogen Chemicals is expected to report Rs 500 crore in revenue in next few years supported by additional capacity, said Harin Kanani, joint managing director. The board has already sanctioned doubling of organic and inorganic lithium and bromine-based molecule capacity, which will be completed in current and next financial year, he said in an interview with CNBC-TV18.

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Neogen Chemicals shares made a strong debut on the stock market on Wednesday, listing at a 17 percent premium over its issue price. The stock opened at Rs 251 per share on the BSE, up 16.7 percent against its issue price of Rs 215 per share.

The current capacity is enough to make depending on product mix Rs 300 crore revenues, he said. The company has been growing at an annual rate of 22-23 percent in last three years with profits coming in at 40 percent plus.

The company has increased the capacity utilisation from 53 percent to 90 percent and that is driving growth in the second half of the year. Going forward, they expect this momentum to continue, said Kanani.

“In the current year with full capacity utilisation, we expect to continue the growth rate or improve on the growth rates done in the last two years,” he said.

The company is seeing good demand from all customers for bromine-based molecules, for lithium and also for custom based contract manufacturing. They are also developing new molecules in all three segments, he added.

With regards to margins, he said better utilisation, better product mix, better-operating efficiencies would aid margin improvement. Lower interest costs would also aid profit after tax margins or the bottom line, he said.

He said the overall cost of raw materials for the company is around 57-60 percent of total sales. The main raw material is bromine along with lithium