Gujarat - Favourite investment destination of global pharma majors!
June 15, 2013: Global pharma companies are looking at Gujarat as the potential hub for manufacturing in the country.
After positioning Gujarat as the potential automobile hub in the country, the global pharma giants’ have lined up expansion plans in the state that may well make it a more prominent pharmaceutical manufacturing hub in the country. Going by the reported figures, Gujarat-based pharma companies currently contribute 40 per cent share to India's total pharma production and over 3,500 manufacturing units are engaged in manufacturing of Allopathic, Ayurvedic, Homeopathic drugs & Cosmetics in the state. And if future plans for pharma companies are something to vouch for, the contribution will only go up in the coming years.
Just recently, Israel’s Teva Pharmaceutical Industries announced that it will enter India through a joint venture (JV) with US-based Proctor & Gamble (P&G). It may be noted here that the JV will set up its first manufacturing facility at Sanand, Gujarat with an initial investment of Rs 250 crore ($44.67 million). In addition, US- based generic pharma manufacturer Amneal Pharmaceuticals has set up a formulations unit and research and development centre near Changodar and plans to start operations out of its facility.
Names like the New Jersey based Apicore LLC and Singapore-headquartered Biosensors International have also expressed their plans to set up base in the state. It is expected that many of these companies will finalise their plans by the 2013 Vibrant Gujarat Summit. So far, 112 memorandum of understanding (MoUs) worth Rs 12,751 crore (US $2.2 billion) have been signed since the first Vibrant Gujarat summit in 2003.
There is no doubt over the fact that the investor-friendly policies of the Narendra Modi-led Gujarat government are one of the major factors in attracting these global names to the state. And keeping in mind the future plans of these global pharma giants, the state will only increase its total contribution to the pharmaceutical industry in times to come.