Usha Sharma – Mumbai
During his recent visit to Sri Lanka, Anand Sharma, Union Minister of Commerce and Industry , announced that the two countries will work together towards the establishment of a pharma manufacturing hub in Sri Lanka. This move will capitalise on the vast strides made by the Indian pharma industry towards meeting global quality standards at affordable prices. It is predicted that the hub will be ready in next two years.
The main objective of the week-long visit was to increase bi-lateral relations between India and Sri Lanka. Sharma led a delegation comprising Pharmexcil as well as Indian pharmaceutical companies to the India Show. Pharmexcil is in the process of preparing a visit report of its meeting, which will be handed over to the Ministry of Commerce and Industry in the next three to four days.
Dr PV Appaji, Director General, Pharmexcil said, “Our recent visit to Sri Lanka was a further step to promote exports from India to the Sri Lankan market besides creating a pharma hub in Sri Lanka and also to increase bilateral trad e. We discussed various topics about the pharma market in Sri Lanka with the Sri Lankan Ministry of Industry and Commerce team led by Jayarathna Herath, Deputy Minister of Industry and Commerce of Sri Lanka, high ranking officials of the Ministry’s Department of Commerce and representatives from the top ten Sri Lankan pharma manufacturers.”
Appaji pointed out, “Sri Lanka needs to source international investments in various ways. To make this appropriate, we will be strengthening our relationship through joint ventures, fresh investments, technology transfer etc.”
Sri Lanka is an emerging pharma market and the market size is estimated to be around $400 million. Around 15-20 per cent of market demand is met internally while the rest comes from exports where India plays a major role. The top three drugs exported to Sri Lanka from India are amoxycilline (antibiotic), glucose liquid, and diloxanide furoate (for intestine/stomach issues).
Appaji highlighted, “On a year-on-year basis, India’s pharma exports to Sri Lanka have increased by 15.95 per cent in 2011 to $126.9 million of which 93 per cent were formulations followed by bulk (seven per cent) and herbals (0.15 per cent).”
“We will help Sri Lanka to create the pharma hub where Indian and overseas companies can establish their manufacturing sites. We have approached Indian infrastructure developers to provide services. During our visit, Ministry of Industry and Commerce, Sri Lanka, has shown some land for setting up the pharma hub. We are conducting the feasibility study of the land and it is expected that construction work will commence in next six months,” Appaji added.
Appaji further said, “I am not saying that the local market in Sri Lanka is less important but to get Sri Lanka’s pharma hub moving, and to follow the India model, I stress that it is better to focus on export-oriented manufacturing aimed at the $956 billion global pharma market, which is growing five per cent annually and is expected to be $1200 billion by 2016. In fact, we are talking of a $1.1 trillion global generic drug opportunity here. Just like India, Sri Lanka can also capture this growth opportunity. Thereafter Sri Lanka needs to attract international investments such as JVs and then bring in the required critical technology for both bulk and formulation manufacturing.” As per a release from the Sri Lankan government, India has given a strong, structured recommendation on the way forward for Sri Lanka’s focus on the huge global market. Its first official discussions with Sri Lanka on the proposed pharmaceutical manufacturing hub has excited the Lankan private sector and concluded successfully.
When asked about the funds for creating the pharma hub in Sri Lanka Appaji indicated that both countries will jointly fund the project.