India is expanding domestic manufacturing of critical pharmaceutical raw materials through the Production Linked Incentive (PLI) Scheme for Bulk Drugs, with five greenfield projects now commissioned across the country.
According to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the projects cover important Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) used in antibiotics, cardiovascular medicines and paracetamol. The government says these facilities are intended to reduce import dependence and strengthen pharmaceutical supply-chain resilience.
Penicillin G manufacturing resumes in India
Lyfius Pharma Pvt. Ltd., a subsidiary of Aurobindo Pharma Limited, has established a Penicillin G manufacturing facility at Kakinada SEZ in Andhra Pradesh.
The project represents an investment of ₹2,270.05 crore and has an installed capacity of 15,000 MT per year. The facility has generated 2,353 direct jobs and recorded cumulative production of ₹1,191 crore.
Penicillin G is an important fermentation-based KSM used to manufacture intermediates such as 6-APA, which are subsequently used in antibiotics including amoxicillin and ampicillin.
The facility has more than 90% domestic value addition and restores domestic Penicillin G manufacturing after a gap of around three decades, according to the government.
India's first fermentation-based Potassium Clavulanate facility
Kinvan Private Limited, a DPB Group company, has commissioned a 400 MT per annum fermentation-based facility for Clavulanic Acid (Potassium Clavulanate) at Nalagarh, Himachal Pradesh.
The project involved an investment of ₹504.68 crore and has generated 465 direct jobs, with cumulative production of ₹413 crore.
Clavulanic Acid is a beta-lactamase inhibitor used in combination with penicillin antibiotics such as amoxicillin. The facility is described by the government as India's first fermentation-based manufacturing facility for Potassium Clavulanate.
New API facilities for cardiovascular medicines
Andhra Organics Limited, a wholly owned subsidiary of Virchow Laboratories Limited, has commissioned facilities at Pydibhimavaram in Andhra Pradesh for manufacturing:
- Sulfadiazine
- Telmisartan
- Olmesartan
The projects represent a combined investment of ₹151.47 crore and have generated 221 direct jobs.
The company developed the manufacturing technology in-house. The government states that domestic production of Sulfadiazine has helped reduce India's import dependence, with imports declining by approximately 73% compared with the FY 2019-20 baseline since domestic supplies began in 2022.
₹60.46 Crore facility for Paracetamol raw material
At Dahej, Gujarat, Meghmani LLP has established a 13,500 MT per annum manufacturing facility for Para Amino Phenol (PAP).
The project involved an investment of ₹60.46 crore and has recorded cumulative production of ₹687 crore.
PAP is an important starting material used in the manufacture of Paracetamol. The PLI-supported facility adds domestic capacity for a material that was previously largely imported, strengthening backward integration in the paracetamol supply chain.
Centrient Pharmaceuticals commissions Atorvastatin API facility
Centrient Pharmaceuticals India Private Limited has established a greenfield Atorvastatin API manufacturing facility in Nawanshahr, Punjab.
The facility has an installed capacity of 206 MT per year. The project involved an investment of ₹161.13 crore and has recorded cumulative production of ₹432 crore.
The project has enabled a supply chain with more than 80% domestic value addition, according to the Department of Pharmaceuticals. Atorvastatin is widely used in medicines for cholesterol management and cardiovascular risk reduction.
Focus on reducing import dependence
The five commissioned projects demonstrate domestic manufacturing capabilities across both fermentation-based and chemically synthesised pharmaceutical inputs.
The projects cover Penicillin G, Clavulanic Acid, Sulfadiazine, Telmisartan, Olmesartan, PAP and Atorvastatin, supporting areas such as import substitution, domestic value addition, employment generation and supply-chain resilience.
The Department of Pharmaceuticals said the projects also demonstrate how targeted policy support can encourage investment in strategically important pharmaceutical manufacturing segments and strengthen indigenous technological capabilities.
- Rajesh Vagh
