SwastiChemEx: Contract manufacturing - India

Monday, 28 April 2014

Contract manufacturing - India

With contract manufacturing business losing sheen, greener pastures like Sikkim emerging as better options for many, increased regulatory scrutiny putting pressure on biggies and financial crises engulfing the established firms, the North Indian pharmaceutical industry is facing rough weather.

The so-called excise free zones of Himachal Pradesh and Uttarakhand, the two major hubs of North India, have become less attractive for the pharmaceutical units, portending woes for the entire industry in the region. Now the only remaining hub is the Jammu region.




`In 1970 and 80s, Delhi and outskirts were leading hubs for the pharmaceutical industry, mostly led by small scale and medium players. Then slowly biggies emerged and captured the ground while some existing units diversified. It is learnt that 30-40 per cent of the units in the excise-free zones are ready to sell their business,” according to industry leader Nipun Jain.

The major pharmaceutical units in the region are Ranbaxy, Panacea Biotec, Venus Remedies, Ind-Swift, Ind-Swift Laboratories, Surya Pharma, Dabur Pharma, Jubilant Organosys, Nectar Lifesciences, IOL Chemicals and Pharma. Over the years, unlike Gujarat of Maharashtra, the region has not witnessed the rise of any new player to reckon with, other than Mankind Pharma.

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