The Karnataka pharma is now upbeat about their future growth prospects as Ananth Kumar was sworn in as the Minister for Parliamentary Affairs and additional charge of chemicals and fertilizers.
With Ananth Kumar at the helm, we see many of the stalled projects in the pharmaceutical space including the setting up of the National Institute of Pharmaceutical Education Research and the much awaited Pharma Park to be revived, stated the Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA).
The state with its 102 pharmacy colleges is the highest number in the country and therefore a NIPER would give the pharmacy professionals a career boost. While the domestic pharma market is estimated to reach US$ 49 billion by 2020, the projected human resource requirement to match this growth is estimated to be about 21,50,000 by 2020.
According to Karnataka drugs controller Raghurama Bhandary, this is the best thing to happen for the state. It will be a double whammy for Karnataka with approval for NIPER and the Pharma Park that will set the growth momentum.
DA Gundu Rao, president, Karnataka Pharmacy Council pointed out that when government of India approved five NIPERs for the country, Karnataka lost it to Andhra Pradesh. Now with Minister Ananth Kumar who understands the pharma sector we are sure the state will see this coming in to support the pharmacy profession.
The state’s 236 pharma companies have been grappling for help to spur growth and enable companies to benefit from the opportunities in the domestic and global market. Now with a Minister Ananth Kumar holding the reins of the ministry of chemicals and fertilizers which includes pharmaceuticals, we are expected to see new developments. We will only see fresh strategies evolve to generate wealth and employment through the development of pharmaceutics manufacturing, Harish K. Jain, treasurer, Karnataka Drugs and Pharmaceutical Association and director, Embiotic Laboratories Pvt. Ltd told Pharmabiz.
The magnitude of the global economic slowdown since 2008 impacted India where decline in exports and new pharma projects plunged the prospects of the pharma industry not just in the country but also in Karnataka. The once industry-friendly state has not been able to attract a single investment since 2005.
In 2012, Karnataka government cleared five major pharma projects which is valued at Rs. 550 crore at the three day Global Investors Meet 2012 held between June 6 and 9, 2012 at the Bengaluru International Exhibition Centre (BIEC). The state department of health and family welfare went on to ink memorandum of understanding with the five companies: Ozone Group Infrastructure Developers to set up the pharma cluster titled ‘Jeevitham’, Medreich Sterilabs, Vivimed, Apotex Research Centre and SriWin. The projects are coming up on the land allotted by the Karnataka Industrial Area Development Board. Expect for Medreich, no other company has been able to make progress.
The slow pace of economic recovery and the high level of unemployment added to the woes of the Karnataka pharma industry which accounts for a total turnover of Rs. 12,000 crore of which exports accounts for Rs. 6,000 crore. The state exchequer receives around Rs. 4500 crore from the pharma sector. Now the state’s pharma industry sees Minister Ananth Kumar to set in motion investments, said KDPMA.