Indian pharmaceutical sector has seen an investment of Rs 7,052 crore in 196 projects during October to December, 2008 across the country as per the database of Projects Today, India's largest database of projects. These include companies like Agastya Biopharm, Lupin, Actis Biologics, Biological E, Anu's Laboratories Ltd, Neuland Laboratories Ltd among others which are planning to invest over Rs 100 crore each.

To begin with Agastya Biopharm India Ltd. has slated an investment of Rs 500 crore to set up two units in Kerala. The first is a drug formulations unit at Mavelikkara in Alappuzha district spread over 30 acres at an investment of Rs 300 crore. The required machinery will be sourced from abroad and India. In February 2008, the company acquired the land for the project and the development works are under progress. But now the Kerala government is working towards the clearance of an SEZ status for the industrial land which is expected in June after the General Election. We will commence construction soon after this, D Aravindakshan, managing director, Agastya Biopharm India told Pharmabiz.

The Rs 300 crore investments will be supported with a Rs 50 crore promoter equity and the remaining 50 per cent of the funds will be raised through venture capitalists, private investors and IPO. In fact efforts to go public would be around October this year, stated Aravindakshan.

In the meanwhile, the company is going ahead with its second project where it has invested Rs 200 crore for an allopathy formulations unit at Chandra Nagar in Palakkad district of Kerala. This project will also spread over 30 acres of land. The project will be funded through banks, financial institutions and internal accruals. In June 2007, work on the project was underway and in September 2007 around 20 per cent of the project work was completed and its commissioning is expected in September 2009.

Aurobindo Pharma is investing Rs 180 crore to set up a drug formulations unit at Polepalli in Mahaboob Nagar district, Andhra Pradesh in two phases. The project cost will be funded through internal accruals. In December 2008, the work on the project was nearing completion and the commercial production is likely to commence by June 2009.

Intas Biopharmaceuticals has invested Rs 160 crore to set-up a new monoclonal antibodies unit with a capacity of 5,000 litres at Matoda village, Sanand in Ahmedabad district of Gujarat. The project will spread over 23,000 sq m and the land has already been acquired. It has initiated the Engineering Design Phase for the project. In January 2009, the feasibility report preparation was underway. The company signed a memorandum of understanding with the government of Gujarat for the project during the Vibrant Gujarat Global Investors' Summit 2009.

Work on the project was expected to commence by December 2009 and the commercial production at the proposed mAb facility is likely to commence by 2011, stated Mani Iyer, executive director, Intas Biopharmaceuticals.

AKR Lifesciences plans to set up a bulk drugs unit in Ahmedabad district of Gujarat. Last month the company acquired the in March 2009 and work on the project is expected to commence by December 2009.