Govt move to incentivise API exports a big boost for sector, IOL Chemicals Jt MD Vijay Garg tells Anil Singhvi
Zee Business exclusive news on governments plans to incentivise exports in the API manufacturing was spot on regarding incentives for the domestic API manufacturing segment. In a chat with Managing Editor Anil Singhvi, IOL Chemicals and Pharmaceuticals Limiteds Joint Managing Director Vijay Garg explains what it means for the sector and his company and impact on China
Zee Business’ exclusive news on government's plans to incentivise exports in the API (active pharmaceutical ingredient) manufacturing was spot on regarding incentives for the domestic API manufacturing segment. In a chat with Managing Editor Anil Singhvi, IOL Chemicals and Pharmaceuticals Limited’s (IOLCP), Joint Managing Director (MD) Vijay Garg explains what it means for the sector and his company and impact on China.
Garg said that it was a big news for the pharmaceutical sector and the government’s Performance Linked Incentive (PLI) scheme has been designed to take Indian companies on global platform.
Incentives for the domestic industry has a limited impact as the domestic sector accounts only for 25-30 per cent of the overall production. The remaining portion was for exports, he said. This will also reduce country’s dependence on API imports.
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On his own company’s prospects, Garg said that IOL was working on 2-3 products. It will be adding Rs 500 cr to its annual turnover over the next 3 years. This PLI scheme is expected to create a 45 cr incentive for the company which will add to its profitability, he further said.
On the issue of Chinese imports, the Joint MD said that the ban on non-essential items still exists. However, the government has allowed the companies to import intermediates, API and chemicals. The dependability on China for essential items is still high. The import is now coming back to the normal levels, he further said.
The delaying of shipments from China has also ended now and things are working fine. Though the prices of material in China have appreciated, the domestic industry is likely to gain as the API is now becoming competitive at a global level because of the rise in prices of in China.
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His message to the government is that it allow incentives on pharma parks in all those states which are coming forward to build one, instead of limiting the incentives to a few states. He said that a pharma-cluster should be built in every state.
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