Puducherry’s drug manufacturers in expansion mode

With Puducherry’s pharma sector showing an annual growth of around 15% and garnering around 39% of the volume of exports from the Union Territory, drug manufacturers are looking for more investments within the territory for augmenting production capacity.

Buoyed by the growth reflected in the last few years, pharma companies, mostly those involved in drug formulations, have sought 150 acres of land in Sedarapet-Karasur area where the government is in possession of over 750 acres of property for industrial development.

“The pharma sector has shown a considerable growth in the last few years. The manufacturers have given a letter expressing interest to invest more for expanding their production line-up. They have asked for around 150 acres with all facilities and the government is positive towards their demand by developing a pharma cluster at Sedarapet-Karasur area,” a senior official told The Hindu.

As per data available with Federation of Indian Export Organisations, under the Ministry of Commerce, bulk drugs and formulations constituted around 39% of the exports from Puducherry during 2023-24. Of the total exports worth $517 million from Puducherry, pharma products accounted for around $170 million. In terms of share of exports from Puducherry, drug formulations, biologicals contributed around 28.44% and bulk drugs and drug intermediates garnered 10.49% of the total volume. 

The FIEO data showed that electric machinery/ equipment (17.65%), auto components/parts (6.97%) and other engineering items (4.71%) are exported from Puducherry. The United States, followed by United Kingdom and Gautemala are the major export destinations from Puducherry. Around 17.5% of the exports are to the US, data revealed.

E. Srinivasan, Secretary of Puducherry Drugs Manufacturers Association said the pharma sector in the Union Territory has grown by about 15% in the last three years. Currently, there are around 60 drug formulation manufacturers in Puducherry providing employment to hundreds of people. Puducherry’s pharma sector has witnessed significant growth in production capabilities with exports contributing to the global supply chain of essential medicines, he said.

“We have outpaced several other regions in terms of growth in the sector. Most of the units here are producing formulations for major pharma companies, such as Lupin, Sun Pharma, Cipla, Hetero, Mankind and Alkem. Interestingly, many new companies have shown interest in setting up units for drug formulations and drug intermediates once the government develops the land for pharma cluster. Around 50 home-grown companies are ready for expanding their production units here. It will certainly help in providing jobs to hundreds of people in Puducherry,” he said.

The Central government was promoting pharma clusters by providing assistance to set up effluent treatment plants, common testing laboratories and warehouses in the drug manufacturing parks. The Puducherry government could leverage the possibilities offered by the Union government for developing the pharma sector, he added.

Tindivanam pharma cluster a challenge

The challenge before the government, said an official in the Health sector, was the development of pharma park in Tindivanam by the Tamil Nadu government. ”The pharma cluster is being developed on Tindivanam-Gingee Road. The development of the cluster was fast progressing with Tamil Nadu government providing all infrastructure within the park. They are encouraging more pharma companies to come up, which could lead to migration of firms from Puducherry,” he said. 

Published - January 15, 2025 07:42 pm IST