Andhra Pradesh needs State-specific bulk drug policy push for investors

Dr PP Lal Krishna, is the CEO & Managing Director of Ramky Pharma City (India) Ltd, popularly known as Jawaharlal Nehru Pharma City, developed as the State's first sector-specific cluster at Parawada in Visakhapatnam district. The cluster has turned into a big hub for pharmaceutical units and it has become such a big hit with an estimated turnover of Rs20,000 crore. Of late, major manufacturers have started demanding establishment of another Pharma City/cluster near Visakhapatnam between Nakkapalli and Payakaraopeta to give further boost to exports from the booming sector. The CEO, in an exclusive interview with Bizz Buzz, predicts a bright future to pharma exports from Visakhapatnam.

1,200 acres out of the 1,400 acres of plotted area are allotted to the industries, which brought investment to the tune of Rs 25,000 crore and their annual turnover is around Rs 20,000 crore. We are expecting the investment and revenue will improve year on year. Multinational companies like Pfizer, Mylan, Eisai, Indian giants like Aurobindo, Biocon, have set up their units at JNPC

We already approached the government to support the pharma industry in the AP. It is better to have a separate Bulk Drug Policy for this State for attracting investment. We also approached the government to support in establishing NIPER (National Institute of Pharmaceutical Engineering Research), Pharmexcell (Pharmaceutical Exports Promotion Council of India) campus

When the Jawaharlal Nehru Pharma City developed by Ramky became operational?

Jawaharlal Nehru Pharama City (JNPC), a sector-specific pharma Industrial Park, the biggest in India, developed by Ramky Pharma City (India) Ltd, a joint venture project with the Andhra Pradesh Government and Ramky before bifurcation. This project was awarded under Public-Private Partnership (PPP) model on Build, Own & Operate (BOO) basis. The concession agreement was executed between Ramky Pharma City (India) Ltd (RPCIL) and Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) on March 12, 2004, and foundation stone laid during 2005. Pharma City came into operation during 2008 in a record time. Companies started operation during 2008. This is the only one park in India offering Integrated environmental management services in one place. JNPC was selected by UNIDO as Eco Industrial Park.

What is the extent of SEZ and non-SEZ area? How many units are in operation and how many more are in the process of launching commercial activity?

The total extent of the park is 2400 acres out of which 611 acres is the designated Special Economic Zone (SEZ) area and balance is the domestic area (non-SEZ). In the non-SEZ, 250 acres is meant for a reservoir for continuous/uninterrupted supply of water to the pharma units, which is essential for the manufacturing of bulk drugs (APIs), Drug intermediates (DI), Key Starting Materials (KSMs) and formulations. Around 1000 acres is plotted area in non-SEZ and balance is common facilities/utilities/ amenities. As of now, 86 units are in operation out of allotments made to 103 units. In the near future, it is possible to establish another 20 units. JNPC has become a role model for the entire India. Based on this park, the Government of India is proposing three parks in India with an aid of Rs 1,000 crore for each park through State implementing agencies.

What is the number of direct and indirect employment provided by units at JNPC?

The employment provided by the Pharma City is around 32,000 people as of now both direct and contract. Indirect employment. There is an opportunity to increase employment to the tune of 50,000 in next two years. AP Skill Development Corporation is conducting skill development training programmes for the graduates of chemistry for the placement into the industry, which is very welcoming step from the industry point of view.

How much is the estimated annual turnover from JNPC and the expectations during 2021-22 fiscal? What is the total investment made into the city?

Out of 1,400 acres of plotted area, 1200 acres are allotted to the industries who brought investment to the tune of Rs 25,000 crore and annual turnover is around Rs 20,000 crore. We are expecting the investment and revenue will improve year on year.

What issues do you think need to be addressed by the authorities?

We already approached the government to support the pharma Industry in the AP. It is better to have a separate Bulk Drug Policy for this State for the investment and employment. We also approached the government to support in establishing NIPER (National Institute of Pharmaceutical Engineering Research), Pharmexcell (Pharmaceutical Exports Promotion Council of India) campus, Indian Institute of Packaging and an ecosystem to provide a Pharma Innovation Centre.

To strengthen the ecosystem for growth of pharma exports from Andhra Pradesh, there was a proposal to develop another Pharma Cluster. What's the status of the project?

In the State of AP, total pharmaceutical production is 10 per cent of the nation, it is possible to produce 35 per cent of the national requirement and exports from AP. We have skilled manpower, qualified personnel, educational institutes, long coastal corridor, supply of potable water, sufficient power, road rail connectivity, port and airport connectivity. We understand the government is also exploring the possibilities of setting up Pharma Park to take the advantage.

What kind of pharma Industries have come up at JNPC?

Multinational companies like Pfizer, Mylan, Eisai Pharma, Pharmazell, Ajinomoto and few others and Indian giants like Aurobindo, Biocon, Laurus Labs, Natco, GVK Bio and Granules have set up their units. We also have Indian companies like Vasudha, Rakshit group and Virchow Group. Basic chemicals manufacturing group like Kanoria, Vishnu Chemicals, catalyst converter like Arora, gas manufacturing companies like Allen-berry and Linde and animal health care units including Alvira have established their facilities. In Pharma City most of the companies are having two or three units, because of the world-class infrastructure and facilities and uninterrupted utilities making JNPC the most successful park in India and Asia.

Any plan for similar parks in future?

Many countries have visited Pharma City. President of Tatarstan (Provenience of Russia), Health Minister from Sri Lanka, Ambassador from Ethiopia, Pharma Manufacturer Association from Bangladesh, Government officials from Gabon, etc., to set up similar kind of Park.

Ramky Group developed 2,700 acres of wood-based processing park in Gabon and common facilities centre in Bangladesh by providing common effluent treatment plant and hazardous waste management facility. Ramky Group is exploring to develop similar parks in India with the support of the Government of India.