Bommasandra Industrial Area in the outskirts of Bangalore situated on the on the Bangalore-Hosur Road is now transforming to become a pharma-biotech-healthcare hub. In the last 10 months, The industrial area has already attracted investments to the tune of around Rs. 300 crore.

According to officials from the Directorate of Industries and Commerce, Government of Karnataka, between March 2003 to October 2004, 15 pharma-biotech- medical contributed investments worth Rs. 308.26 crore. The new projects are scheduled for construction in during 2005 and would be ready for commissioning in the next 18-24 months.

The Bommasandra Industrial Area which had total land availability of 600 acres in early 2004 has only 100 acres to spare for future investments. The shortage of land has occurred because of the major 15 pharma projects and other additions from the steel and textile sector.

Karnataka is now viewed a potential destination for pharma investments mainly because of the availability of skilled workforce and the presence of research establishments, pointed out Gurunath S Kulkarni. managing director, Karnataka Udyog Mitra the official body which is the first contact point for investment in Karnataka.

Pharma industry sources are euphoric about the improvement in the state's investment climate as compared to what existed in early 2000. Now at Bommasandra, the leading enterprises to set base here include Sigma Aldrich, a US-based life sciences and chemical specialist, Hexal Pharma a fully owned subsidiary of Hexal AG, Austria, Cipla and Micro Labs. Micro has received clearance for up two manufacturing plants at a total investment cost of Rs.64.30 crore.

A major deterrent factors for poor investments in the last few years in the state are the meagre incentives offered by the government of Karnataka for setting up industries in the state like for instance the concessions under Industrial Policy, Biotech Policy 2002 and exemption of entry tax. But officials in the directorate of industries point out that despite the unattractive proposals, the industrial hubs in and around Bangalore, are in popular mainly because of its salubrious climate, availability of skilled manpower, presence of highest number of pharmacy and biotech institutions, expressed senior officials from the department of industries and commerce, government of Karnataka.

Micro Labs has been allotted land by the Karnataka Area Industrial Board (KIADB) and expects to set up bulk drug unit here at an investment of Rs.23.9 crore. The land levelling is being done and Consent for Establishment is applied to the Karnataka state pollution control board. Hexal Pharma, a leading European generics company from project is under implementation with an investment of Rs. 23.9 crore.

Companies which are already in the process of setting base here in Bommasandra include Brantford Chemicals which has completed almost 90 per cent of its construction work. It will manufacture pharmaceuticals and chemicals and also have a research and development unit. Medical oxygen manufacture -BOC India, has gone in for an additional facility at an investment of around Rs. 5 crore.

Organic Aromatics's investment is (Rs. 57.6 crore) for production of organic chemicals. Futuristic Diagnostic Imaging Centre has invested Rs. 17.50 crore to manufacture diagnostic lab with cyclotron and PET/CT scanner. Biovel Healthcare has invested Rs. 24.1 crore to manufacture biopharmaceuticals and biotech products. GVK Biosciences has invested Rs. 24. 2 crore to set-up Bioinformatics drug discovery and development.

Mumbai-based Unitop Chemicals has invested Rs. 24. 3 crore to manufacture anionic surfactants and cosmetic additives. Jamshedpur Injection Powder has invested Rs. 64.5 crore to set up a facility for production of de-sulpharising compounds. Crescent Polymers has invested Rs. 38.9 crore for production of silicon emulsions for cosmetics. Gopalan Enterprises International would be setting up procurement and extraction of herbal products and medicinal hers at an investment of Rs. Rs. 20 crore.

A medical centre- Sri Satya Sai Narayana Hospital at an investment of Rs. 2.36 crore has also been cleared.