The pharmaceutical sector in Karnataka, which registered Rs 3,000-crore sales in 2005, is all set to grow further in the coming months provided no roadblocks are placed by the State Government in its path, members of the Karnataka Drugs and Pharmaceutical Association said.
In 2003, the state registered a turnover of Rs 2,000 crore. An increase of Rs 1,000 crore in the last two years was on account of spurt in sales both from global and domestic markets. “The units have been able to survive the despite imposition of MRP based excise and lower rates of DEPB by the Union Government,” stated KDPMA members.
The state, which is witnessing an increasing number of investments, is emerging as an investment destination. Between March and September 2005, it received over 25 pharma-biotech- medical investments worth Rs 600 crore.
Among the existing 240 units, at least 60 per cent have gone in for expansion and upgradation to grab a share of the global market opportunities. Micro Labs, the largest pharma enterprise with a turnover of Rs 500 crore, has received approvals from MCC, South Africa, Health Canada, Invima Colombia.
The multinational major AstraZeneca is now getting ready to commission its state-of-the art process research and development laboratory in November 2006, which is coming up at an investment of US$11.9 million.
The Rs 67 crore Bal Pharma has allocated around Rs 45 crore for plants at Uttaranchal and Bommasandra in Bangalore which would conform to US FDA and MHRA.
The pharmaceutical industry in Karnataka contributes Rs 350 crore in revenue to the state exchequer and provides employment for 12,000 people. Its growth rate is around 15 per cent and the exports are valued at Rs 850 crore which is 8 per cent of Indian exports.
“The main advantages of Karnataka's small-medium units are their visibility in national and international market, skilled workforce, capability to produce a wide-spectrum of drugs from bulk drugs, formulations, parenterals, soft-gel capsules to sustained release formulations,'' stated N. Jatish Seth, secretary, KDPMA and director, Srushti Pharmaceuticals Pvt. Ltd.
“The units have been recognised for stringent regulatory enforcements and known to manufacture quality products. Global pharma companies have already approved some units for contract manufacture and have placed several repeat orders,'' stated Shailesh Siroya, managing director, Bal Pharma.