Buoyed by 15 to 20% growth during 2017, the pharma industry is expecting a booster dose before the general elections to undertake greenfield and brownfield projects.
Considered the main pharma cluster of Sunrise Andhra Pradesh, the industry, spread over Vizianagaram, Srikakulam and Visakhapatnam districts, is now breathing it easy after experiencing tense moments over threats to stop imports by US President Donald Trump.
“On the whole, the year passed off very well. We registered good growth during the year compared to a turnover of ₹17,000 crore last year,” Jawaharlal Nehru Pharma City CEO Lal Krishna told The Hindu .
North Andhra is home to big pharma units, including Hospura, Mylan, Eisai, Aurobindo, Divi’s, Reddy’s Labs, and Hetero.
All the units put together have an estimated turnover of over ₹35,000 crore.
USFDA approval
During the year, a record number of units received approval from USFDA. The API and other products produced in the region are in high demand in the United States, the European Union, Japan and other overseas destinations because of price advantage.
In JNPC itself, 75 of the 100 units allotted sites have gone on production. Other units are in various stages of construction. There is demand for a second Pharma City.
As a booster dose, the promised National Institute of Pharmaceutical Education and Research (NIPER) has not materialised yet.There is no progress in allotment of 500 acres required for it.
To develop it on the lines of IIT, the campus needs an allotment of ₹600 crore from the Centre for creating the required infrastructure.
Air cargo complex
However, one major achievement for the pharma units is the recent commencement of air cargo complex at the Visakhapatnam International Airport.
“This will not only reduce our delivery time but also help us in saving the expenditure incurred on logistics,” a CEO pointed out. Right now, pharma products are being sent to the overseas destinations via road to either to Hyderabad or Chennai.
