Rs 8,000 cr Jambusar bulk drug park to cut reliance on imports, ET HealthWorld


Ahmedabad: Pharma hub Gujarat will soon see fast track development of the proposed bulk drug park in Jambusar. The 2,000-acre park will be instrumental in ensuring domestic production of key starting materials (KSM), Active Pharma Ingredients (API) and pharma intermediates, which are currently imported from China.

As per Indian Drug Manufacturers’ Association (IDMA) estimates, the park will have 400 companies and see an investment of over Rs 8,000 crore.

The state government is expected to start the tender process for the park’s common facilities and land allotment to the companies soon.

IDMA president Viranchi Shah said, “Gujarat is India’s pharma hub with around 28 per cent share in exports and 32 per cent share in total production. The central government has announced setting up three bulk drug parks in the country including one in Jambusar, Gujarat, to reduce bulk drug import dependence. Common facilities like nitrogen utility, Common Effluent Treatment Plant (CETP), solvent recovery, training facility, testing and research facility and common steam utility will be set up and tendering process will be started soon. We hope the common facilities will be set up by end of the current financial year.”

IDMA Gujarat treasurer Atul Shah said, “Around 400 companies are expected to set up their facility in the bulk drug park, manufacturing around 51 products like Amoxicillin, Azythromycin, Cephalexin, Metaformin, Vitamin B1 and B6 and Acyclovir. Common facilities will be provided by the government so the manufacturing cost will reduce and we will be able to compete China in pricing.”

The Indian pharma market, including domestic demand and exports, is sized at around Rs 4 lakh crore. The industry registered 5.1 per cent growth in exports in the first quarter of 2023-24 but its dependence on raw material has increased over the years.

In 2015-16, India imported APIs worth $2,110 million, which increased to $3,180 million in 2022-23. China is the biggest supplier of APIs to the Indian pharma industry. In 2020, the central government announced the Production Linked Incentive (PLI) scheme to reduce import dependence and boost domestic manufacturing of raw materials. IDMA officials believe the PLI scheme and bulk drug parks will significantly reduce API imports in the coming years.

  • Published On Aug 17, 2023 at 12:09 PM IST

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