|
The Karnataka government is scouting for anchor investors in the pharma sector. This has been the key reason for pharma industry not finding any mention at the ongoing Global Investors Meet where the focus is on new-age industries like green hydrogen, electronics manufacturing, renewables, aerospace and defence, e-mobility, and infrastructure. The state government has set a target of attracting Rs. 5 lakh crore of investments and to generate 5 lakh jobs across sectors including pharmaceuticals.
The 3-day Global Investors Meet, titled ‘Invest in Karnataka’ held from November 2 to 4 in Bengaluru was inaugurated virtually by Prime Minister Narendra Modi and is positioned as the platform to woo international investors. The state had been a key player in attracting outsourcing in production and is known to produce 7 of the 10 products for global pharma majors.
Its Kadechur-Badiyal Bulk Drug Park in Yadgir district, set up with the Department of Pharmaceuticals (DoP)’s assistance of around Rs. 100 crore, is yet to garner investment interest. Early this year the Karnataka government indicated that Global Investor Meet 2022 will aim to attract investments from across the world even into pharmaceuticals.
In Karnataka, pharmaceuticals has been exporting substantially by its proving capacity, capability and time-line delivery schedules that paved the way for its reliability in the global market. In fact, for Karnataka its last investment from GlaxoSmithKline was in 2014 where it invested Rs. 994 crore to set up its advanced tablet facility at the Vemagal Industrial Area in Kolar district as a Greenfield project.
Minister for large & medium industries, Dr Murugesh R Nirani said, “Karnataka is the preferred destination for investments in the manufacturing. We are looking at forging partnerships. With the key themes of resilience, innovation, sustainability, and equity, we are committed to setting Karnataka’s development agenda in line with global best practices and showcasing our strong ability to ‘Build for the World. In fact Karnataka is at the top in attracting FDIs in April 2021 to March 2022 to the tune of Rs. 1.76 lakh crore which is a share of 38 percent of the total foreign direct investments into India.”
The absence of pharmaceuticals is conspicuous. Pharma has been recognised for its qualified workforce and companies that have shot into international fame, noted industry observers.
According to Harish K Jain, president, Karnataka Drugs and Pharmaceutical Manufacturers Association and director, Embiotic Labs, the last Global Investors Meet held in 2021 had the government focus on pharma industry. This year even in the international road shows there was no interest evinced. The government gathered that there were no big ticket investments which made it to overlook pharma. Moreover, global pharma investors are closely looking at locations like Gujarat, Himachal Pradesh, Uttaranchal and Uttar Pradesh.
The Union government’s production linked incentive (PLI) scheme, Make in India for the world initiative allows pharma sector to invest anywhere in the country. The Karnataka Industrial Policy too favours investors to consider the state which is a knowledge based location. It is the headwinds that deter promising investments. Even in the case of Yadgir Pharma Park, it is work in progress for investors to pump in funds. By mid-next year, much of the commercial production will commence which could help companies look at slating investments, added Jain.
|