Gujarat’s pharma sector to attract high investments
29 October 2018
The pharmaceutical sector in Gujarat is set to witness investments ranging from Rs. 6,000 crore to 9,000 crore over the next couple of years as hundreds of new pharma manufacturing plants are coming up across the state. Nearly 180 new pharma plants are under various stages of development in Gujarat. The investment by these firms, especially micro, small and medium enterprises (MSMEs), is estimated between Rs. 6,000 crore to Rs. 9,000 crore as minimum outlay for constructing a drug-making plant averages between Rs. 35 crore and Rs. 50 crore, say industry players.
Scores of pharma players in the state are expanding their business in line with overall growth of the industry, while others are taking up modernisation projects. Most importantly, dozens of pharma companies now prefer Gujarat over tax-exempted states like Himachal Pradesh, Jammu and Kashmir, Uttaranchal and Uttarakhand for their new manufacturing facility.
“After the implementation of GST, the production cost difference between tax-exempted states and other states like Gujarat has narrowed substantially. As a result, many pharma companies have turned to Gujarat, which has a conducive environment and infrastructure for making quality drugs,” said an industry player.
This could be seen from the fact that Food and Drug Control Administration (FDCA), Gujarat, approved constructions of 155 new pharmaceutical manufacturing facilities in the state during the first twelve months since GST was implemented from July 2017.