Financial Daily from THE HINDU group of publications
Saturday, Apr 13, 2002

Port Info

Group Sites

Industry & Economy - Pharmaceuticals

Karnataka Pharma units in pink, thanks to outsourcing

Vishwanath Kulkarni

The total turnover of the industry in the State is estimated to be in the region of Rs 1,600 crore.


OUTSOURCING of pharmaceutical manufacturing has gained prominence in Karnataka over the last three to five years.

A majority of pharma companies in the country, including MNCs, are outsourcing their manufacturing requirements of both bulk drugs or formulations from the State.

With this trend, pharma units in and around Bangalore have already expanded their capacities in the last few years. Of the the 70 companies, both big and small in the State, about 28 are operating in and around Bangalore while the others are spread across Mysore, Mangalore, Hubli and Raichur.

"With just around one per cent of the total pharma manufacturing companies in the country, Karnataka accounts for 10 per cent of both the country's exports and domestic production,'' said Mr Jatish Sheth, Secretary, Karnataka Drugs and Pharmaceutical Manufacturers' Association.

The total turnover of the industry in the State is estimated to be in the region of Rs 1,600 crore while exports account for nearly Rs 450 crore. It also employs nearly 30,000 employees, both skilled and semi-skilled.

The pharma sector is the third largest employer in the State after the garment and the IT industry. The exports from the State are mainly to the US, the UK and Africa.

"The products manufactured in Karnataka are respected for quality '' said Mr Sheth. "This is primarily because of the world class facilities that are available and also due to the strict regulatory measures enforced by the State Drug Control Department, considered to be the best in the country,'' he added.

"There is a tremendous potential to grow provided the State Government gives some sort of an encouragement, not in terms of incentives but in terms of providing good infrastructure facilities such as uninterrupted supply of power, common effluent treatment plant etc.,'' said Mr Suresh Khanna, Director, Kemwell Ltd.

Bangalore was ideally suited for pharma industry in terms of climatic conditions such as temperature, humidity and relatively clean atmosphere, Mr Khanna said.

Pharma companies such as GlaxoSmithkline, Zydus Cadila, Cipla, Astra Zeneca, Wyeth, E-Merck, US Vitamins, Ranbaxy and Aventis are among others who outsource their requirements to the manufacturing units in the State.

Send this article to Friends by E-Mail

Stories in this Section
3 key Budget proposals being reviewed by Govt

Resolving disputes with less pain
Industrial growth marginal at 2.6 pc in 11 months
MSCI cuts India weightage further
Mexico initiative for trade data panel
Karnataka Pharma units in pink, thanks to outsourcing
IDBI seeks NTPC technical consultancy for Dabhol
New MERC member
Policy irks powerloom sector
Powerloom exporters' entitlement
Maharashtra to release 3 tmc ft water
No relaxation of curbs on export units: DGFT
`Existing schemes must be pruned'
ACMA delegation to tour Egypt
Kerala: Govt team to be trained in HACCP
Kalam makes light of Pak nuclear `threat'
Film industry is insurance shy
TN cinemas allowed to hike ticket prices
EPF trustees stick to 9.5 pc
`Doha concessions not included in Patents Bill'
BHEL R&D unit gets aggressive on patents
INTUC plea to unions
Southern Africa keen on IT solutions from India
`Fear of failure haunts Indian entrepreneurs'
Ease I-T norms for charitable trusts: ICAI
Tourism promos on global TV channels planned
AP: Amaravati Utsav gets under way
New Icrier chief

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line