PLI scheme good, but more needs to be done to boost API research

Pharmaceutical manufacturing is a highly capital-intensive business. Although India is a major player in pharmaceutical formulations manufacturing, "there's still a huge gap in the production of active pharmaceutical ingredients (API) within India. The country relies on China and other countries for much of its APIs at the moment, losing huge foreign exchange in the process. The government needs to intervene and support the industry by boosting research and manufacturing capacities so that the country can begin to meet its API demands locally," says Sanjeev Jain, MD, Akums Drugs & Pharmaceuticals Ltd in an interview.

You recently acquired a facility from Ankur Drugs & Pharmaceuticals Limited. How will the acquisition help Akums?

As one of the leading pharmaceuticals companies in India, Akums Drugs & Pharmaceuticals Limited, is always on the lookout for meaningful expansion and growth opportunities. The acquisition of Ankur Drugs & Pharmaceuticals' facility is geared towards boosting our production capacity by achieving 6 billion units of tablets and more than 90 million units of oral liquids every year. This is aimed at helping India achieve its desired boost in the export market, which is currently valued at $24.6 billion and growing at a rate of 18.7 per cent at the moment.

Tablets and oral liquids are the two important dosage forms across therapeutic areas and patient profile. Tablets constitute 52 per cent of market by value and 9 per cent of oral liquid as per AIOCD AWACS data.

But it's not just about facilities and equipment; we're also very concerned about human capacity development. We're investing heavily in personnel training, research, and other programmes that expose our employees and researchers to industry trends, as well as uncharted territories. This explains why we have several innovative products like the fast melt dissolving antacid powder, the painless progesterone injection, and medicinal jellies and chewing gums. So, with such facility acquisition, we have significantly expanded our capacity.

How would European Union (EU) Good Manufacturing Practice (GMP) approval for two Akums' manufacturing units in Haridwar help the company?

Akums already has a very strong domestic image in India, and this is largely due to the fact that we have always been quality conscious. Every choice we make is based on our belief in the quality-first approach. While we have been endorsed for this quality by our partners who are also leading Indian and multinational pharmaceutical companies, the latest one from the EU GMP is very widely recognised and accepted. It is these same manufacturing plants that serve the domestic market and have received the European Union approvals. With the EU's GMP approval for two of our manufacturing facilities in Haridwar, Akums is well positioned not just for the Indian domestic market, but also to serve the international market. This is a step towards becoming a global contract development and manufacturing company (CDMO).

Our quality standards are in line with international best practices, and this gives us the advantage to serve regulated markets and supply healthy, potent drugs to pharmaceutical companies around the globe.

Has the PLI Scheme helped the pharmaceutical sector?

Pharmaceutical manufacturing is a highly capital-intensive business. Although India is a major player in pharmaceutical formulations manufacturing, there's still a huge gap in the production of active pharmaceutical ingredients (API) within India. The country relies on China and other countries for much of its APIs at the moment, losing huge foreign exchange in the process. As an industry leader in pharmaceutical formulations, this is one of our concerns. The government needs to intervene and support the industry by boosting research and manufacturing capacities so that the country can begin to meet its API demands locally.

The PLI Scheme and other incentives offered by state governments are good steps in the right direction. There's a need to sustain such programs to help manufacturers align fully with the vision of Prime Minister Narendra Modi on boosting India's pharma exports. Akums plays a huge part in the pharmaceutical's ecosystem in India as a fully certified and renowned contract manufacturing company with world class facilities, and we're happy with the PLI Scheme so far, but much more can be done to boost API research and manufacturing.

Where do you see the pharmaceutical sector in the next five years, in 2027-28 to be precise?

The prospects are very exciting for India. The pharmaceuticals industry has grown significantly in the last 20 years, and we've recorded tremendous milestones along the way. The industry is currently valued at $42 billion, and is projected to reach more than $120 billion by 2030 at a CAGR of about 11 per cent. Essentially, this growth trajectory will be propelled by increasing exports and pharmaceutical formulations to even more regulated and semi-regulated markets.

However, we should not ignore the domestic markets. There'll also be a boost in domestic demand across many therapies. We'll also be seeing a lot of activities in the API and key starting materials (KSM) segments. We expect a boost in domestic manufacturing aided by enhanced contract research opportunities so the nation can achieve import substitution.

With the right support and incentives, India can become an even bigger pharmaceutical powerhouse and replicate the status of Atma Nirbhar in the pharmaceuticals industry. This begins with extensive research and expanding capacity to increase export of pharmaceutical formulations and APIs. Besides, with the lessons learnt from the Covid-19 pandemic, the Indian pharmaceuticals industry must be positioned to always be ready for health emergencies.

Where do you see Akums in terms of turnover in 2027-28?

As for Akums Drugs & Pharmaceuticals Limited, there is a commitment to sustain and even surpass our growth trajectory which has remained at an average of 20 per cent CAGR in the last five years. The plan is to serve existing clients much better and build on our excellence and professionalism over the years, while increasing the capacities of dosage forms, moving into newer therapies, dosage forms and markets, and increasing our export share, among other projected deliverables.