GlaxoSmithKline has set its eyes on Karnataka and is all set to work towards setting up its advanced tablet facility at the Vemgal Industrial Area in Kolar district where it has slated to invest Rs. 994 crore for a Greenfield project.
Senior officials of the UK drug multinational were in Bengaluru to appraise their future efforts following the 50 acres of land allocation by the Karnataka government to set up a formulation production unit.
According to the sources, this will be a second time entry for GSK into the state. It had a major presence in Karnataka a decade ago before it wound up operations here and depended on contract manufacturing opportunities from local companies. GSK officials also sought for timely clearances of its fresh investment in terms of regulatory clearances to manufacture tablets from the state government.
A few months ago, the GSK completed the formalities of land clearances that were provided by the Karnataka Industrial Area Development Board (KIADB) and the Karnataka Udyog Mitra (KUM),which facilitated its investment.
Almost a decade ago, the company had wound up its operations and looked at Karnataka only to get a range of its products manufactured under contract. It went on to source its production of a range of products from Crocin among other branded formulations from companies like Kemwell, Medreich now acquired by Meiji Pharma, Remidex, Geltec and Tejkamal Pharmaceuticals, said the sources.
However, it is gathered from sources that it would continue to seek the assistance for production from contract manufacturers.
The investment from GSK into Karnataka will be a big boost to the pharma investments in the state. It has been over a decade that such a major investment came in. The new GSK facility could in a couple of years also create more employment opportunities. The multinational drug major also has an advantage to access qualified pharma human resources from the 120 pharmacy colleges in Karnataka. The state is home to 236 pharma companies. Of these there are around 15 notable players covering Biocon a bio-pharma major, Strides Arcolab, Micro Labs, Bal Pharma, Natural Capsules, Shilpa Medicare to name a few.
For fiscal 2014, Karnataka pharma industry registered a turnover of Rs. 12,500 crore which is 9 per cent of the national turnover of Rs. 1.30 lakh crore in fiscal 2014. The exports earnings are Rs. 5,200 crore.