India is taking a significant step to reduce its reliance on pharmaceutical imports, particularly from China, by inaugurating two greenfield plants under the Production Linked Incentive (PLI) scheme.
These facilities aim to produce key starting materials (KSM) and active pharmaceutical ingredients (API) domestically, marking a major push toward self-sufficiency in critical drug manufacturing.
The two plants, launched last month, will focus on manufacturing Penicillin G, 6-APA (6-Aminopenicillanic acid), and Clavulanic Acid.
These essential molecules are used in a variety of common antibiotics but have not been produced locally for over two decades.
The production halt previously left India highly dependent on imports, particularly from China, which has historically been the main supplier of these ingredients.
The government and industry experts anticipate that these plants will help reduce India’s import dependence on Penicillin G and 6-APA by 50 per cent. Lyfius Pharma’s facility in Kakinada, Andhra Pradesh, will produce 15,000 metric tonnes (MTs) of Penicillin G annually.
Of this, 12,000 MT will be used to manufacture 6,000 MT of 6-APA, which is a precursor for several antibiotics, including Amoxicillin and Ampicillin.
This development is expected to reduce India’s import dependency for these compounds by 50 per cent, with a substantial reduction in imports from China, which accounted for 77 per cent of Penicillin G and 94.1 per cent of 6-APA imports in FY24.
In addition, Kinvan Private Limited (KPL) has commenced production at its 400-MT plant in Solan, Himachal Pradesh, focusing on Clavulanic Acid, a vital component in producing bacteria-resistant antibiotics.
India has been entirely dependent on imports for Clavulanic Acid, with China supplying 85.3 per cent of the demand. This new facility aims to reduce the country’s import reliance by 40 per cent, addressing a critical gap in the Indian pharmaceutical supply chain.
These new plants, representing investments under the PLI scheme, are expected to strengthen India’s position in the global pharmaceutical market by enhancing local manufacturing capacity, reducing costs, and ensuring a more secure supply chain for essential medicines.
