SwastiChemEx: Micro Labs & Bal Pharma strengthen operations

Monday 28 April 2014

Micro Labs & Bal Pharma strengthen operations

Large pharma companies who are keen on emerging markets to support top line growth cannot ignore investments in locations like Baddi in Himachal Pradesh and Uttaranchal along with Sikkim in the north. The two companies from Karnataka, Micro Labs and Bal Pharma which jumped into the bandwagon for strategic investments in the region between 2005 and 2007 still view Baddi and Uttaranchal ,destinations for domestic as well as emerging markets supplies.

On the whole, small and medium size units have a strong presence in Baddi and Uttaranchal primarily to carry on contract manufacturing assignments.


However Kaushik Desai, immediate past chairman, Industrial Pharmacy Division, Indian Pharmaceutical Association (IPA) consider North India particularly Baddi and Uttaranchal now unviable locations for continued investments from a long-term view point.

The region is facing tremendous challenges in terms of accessing and retaining skilled workforce. The regulatory landscape needs to be strengthened considerably. Further, the lack of additional tax benefits make it even more unattractive for companies to consider expansions. This has led pharma companies not to concentrate on these locations or even mull any additional expansions.

A section of pharma companies in the region stated that issues such as production plants in remote locations, unwillingness of skilled work force to relocate , constant challenge of hilly terrains in terms of transportation and logistics hamper efficiency in terms of time and money.

Moreover the regular findings of not-of-standard quality drugs manufactured has also sullied the reputation of this region. The stark reality is that the highest number of substandard drugs detected by the state drugs control departments across the country is from this region,.

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