Ramky Group, which is developing the Pharma City in Visakhapatnam mainly for bulk drug units are, in talks with Singapore-based SembCorp Group for a project tie-up. M Gowtham Reddy, one of the directors of Ramky Group, told Pharmabiz that the Group is exploring the possibilities with SembCorp Group for getting overseas companies to set up their bases in the Pharma City.

The Pharma City under development by Ramky Pharma City (India) promises to offer infrastructure of global standards and is claimed to be the first of its kind initiative in India. The project is currently allowing only bulk drug companies. Such sector specific industrial estates are few in most parts of the world.

Ramky is also setting up a separate Special Economic Zone (SEZ) spread across 500 acres within the proposed Pharma City, where about 10 MNCs are expected to set up their manufacturing or R & D units. Global pharma majors such as Pfizer, Merck and Aventis are likely to set up units in this SEZ. Among the Indian companies, Dr Reddy's Labs is showing interest in setting up a unit at SEZ. The Zone is to host only those companies, which are looking at export of bulk drugs.

The Pharma City, which is to be developed in two phases will include establishing infrastructure in the first phase with an investment of Rs 300 crore and setting up of a captive power plant of 80 MW capacity by investing Rs 400 crore. The capital establishment outlay in the Pharma City will be in the tune of Rs 2500-3000 crore whereas the sales turnover of the companies operating in the City will be roughly about Rs 10,000-15,000 crore, Reddy mentioned.

Once the companies set up their bases in the Pharma City and operate for about 3-4 years, Reddy says, the contribution of AP to bulk drugs industry is more likely to increase from the current 30 per cent to 40 per cent. India is in a better position than China in the bulk drug industry and is growing steadily. The growth of the industry will be further accelerated after the Pharma City project is over, he opined.

It is expected that about 15 R & D centers will be set up by various bulk drugs manufacturers from various parts of the world in the City and Ramky is also looking at the possibility of setting up a big R & D centre which can be used by the small scale players in the segment.

Reddy, on other unique features of the estate added, the SEZ will have a Development Commissioner appointed by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) acting as a single window authority for all the clearances (industrial, environmental, labour, commercial etc).

As of now, more than 50 bulk drugs companies have booked their plots. The Pharma City is coming up at Paravada, 33 kms South of Visakhapatnam.