Novonesis to Invest €600 Million in Patalganga Enzyme Plant

Novonesis announced on September 2, 2026, that it will invest €600 million to expand its site in Patalganga, India, and build what it described as one of the world’s most advanced enzyme production facilities, with the new plant expected to be fully operational in 2030. The company announcement, dated from Copenhagen, Denmark, states that the investment will increase production capacity to meet rising worldwide demand for the company’s biosolutions and strengthen the flexibility and resilience of its global supply network.

The Patalganga facility will produce enzymes for a broad range of industries, including biofuels, household care, and food and beverages. Novonesis characterized the expansion as a milestone in its strategy and key to achieving its growth ambitions.

“This is an important step in executing our strategy and reflects our continued commitment to investing for sustainable growth,” said President and CEO Ester Baiget. “The expansion strengthens our ability to support customers around the world and enables us to continue creating long-term value for our shareholders.”

The facility will be integrated into the company’s global production footprint and is intended to bring Novonesis closer to customers across the Middle East, India, and Africa. The company said these markets represent an important and growing part of its business and are expected to grow faster than developed markets in the coming years.

“As demand for biosolutions continues to grow across industries and regions, expanding our global production capacity is a priority,” said Chief Operating Officer Anders Lund. He said the Patalganga expansion will strengthen the company’s scale, operational resilience, efficiency, and supply flexibility, while bringing it closer to customers in key growth markets.

Part of a Series of Capacity Investments

Patalganga is part of a series of investments Novonesis has made to strengthen its global production setup and serve customers more effectively. Facilities in Rayong, Thailand; Franklinton, North Carolina; Taicang, China; Araucaria, Brazil; and West Allis, Wisconsin, have also been expanded as part of this effort. The company said the investments align with its strategy and its previously communicated capital expenditure plans.

Water, Energy, and Emissions Design

The Patalganga facility will be built to use less water and energy than conventional designs. Freshwater recycling will reduce the amount of water the site draws, while integrated heat pumps will lower the energy required to operate it. According to the company, these measures together will put the facility on a path toward lower Scope 1 and 2 emissions. Lund said Patalganga brings together what Novonesis has learned across its production footprint and takes the company another step toward zero-emission production.

The capital spending plan follows the company’s half-year 2026 results, published on August 19, 2026, in which Novonesis reported a capital-expenditure-to-sales ratio of 9.7%, which it said was as planned. The company reported organic sales growth of 8% in the first half of 2026 and an adjusted EBITDA margin of 37.7%, and it raised its full-year 2026 outlook for organic sales growth to a range of 7-8%, from a previous 5-7%. It expects the full-year adjusted EBITDA margin at the higher end of its 37-38% range.

In the same August 19 announcement, Novonesis said its Board of Directors approved an interim dividend for the first six months of 2026 of DKK 2.35 (EUR 0.31) per share. The board also approved an inaugural multi-year share buyback program in a total amount of EUR 1 billion, to be initiated during the second half of 2026 and expected to be completed by the end of 2029. The company additionally stated that, as communicated on August 10, 2026, it signed an agreement to acquire the remaining 77% of MicroBioGen.

Novonesis was formed in 2024 when Chr. Hansen and Novozymes combined, according to the company’s overview. The company says it employs 11,000 people worldwide whose work spans more than 30 industries, and it describes itself as a world-leading biosolutions partner organized in two divisions covering food and health biosolutions and planetary health biosolutions.

The company has also published financial targets for 2030: an organic sales compound annual growth rate of 6-9%, an adjusted EBITDA margin of approximately 39%, and an adjusted return on invested capital excluding goodwill of approximately 16%. Its published non-financial targets include reducing emissions by 75% from its own operations and 35% from its supply chain, measured as absolute CO2 reductions from a 2018 baseline, and reaching a minimum of 40% of the underrepresented gender in senior leadership positions during the strategy period.