PLI Scheme for Bulk Drugs Drives Domestic Manufacturing Growth
The Production Linked Incentive (PLI) Scheme for Bulk Drugs is strengthening India's domestic manufacturing capabilities for critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). The scheme aims to reduce import dependence and enhance resilience across the pharmaceutical supply chain. Five greenfield projects have commissioned manufacturing facilities under the scheme, demonstrating growing scale and diversity in domestic production covering critical ingredients for antibiotics, cardiovascular medicines, and Paracetamol.
Project-Specific Details and Investments
Lyfius Pharma Pvt. Ltd., a subsidiary of Aurobindo Pharma Limited, has established a large-scale Penicillin G manufacturing facility at Kakinada SEZ in Andhra Pradesh with an investment of ₹2,270.05 crore. The facility has an installed capacity of 15,000 MT per annum, has generated 2,353 direct jobs, and recorded cumulative production of ₹1,191 crore. This project represents the restoration of domestic Penicillin G manufacturing after a three-decade gap and features over 90% domestic value addition. Penicillin G is a critical fermentation-based KSM used in producing intermediates like 6-APA, which are essential for manufacturing widely prescribed antibiotics including amoxicillin and ampicillin.
Kinvan Private Limited, a DPB Group company, has established India's first fermentation-based manufacturing facility for Clavulanic Acid (Potassium Clavulanate) at Nalagarh, Himachal Pradesh. The facility has a capacity of 400 MT per annum with an investment of ₹504.68 crore, has generated 465 direct jobs, and recorded cumulative production of ₹413 crore. Clavulanic Acid is a β-lactamase inhibitor combined with penicillin-group antibiotics such as amoxicillin to improve effectiveness against resistant bacteria. This project represents a significant bio-pharmaceutical investment in a hill state, adding to Himachal Pradesh's pharmaceutical manufacturing base.
Andhra Organics Limited (AOL), a wholly owned subsidiary of Virchow Laboratories Limited, has commissioned manufacturing facilities for Sulfadiazine, Telmisartan, and Olmesartan at Pydibhimavaram in Srikakulam district of Andhra Pradesh. The projects involve a combined investment of ₹151.47 crore and have generated 221 direct employment. The company developed the manufacturing technology in-house and established greenfield production facilities. Domestic production of Sulfadiazine has contributed to a 73% reduction in India's import dependence compared to the FY 2019-20 baseline since the company began supplies in 2022. Telmisartan and Olmesartan are widely used APIs for hypertension medicines.
Meghmani LLP has established a 13,500 MT per annum manufacturing facility for Para Amino Phenol (PAP) at Dahej, Gujarat, with an investment of ₹60.46 crore. PAP is a critical starting material for Paracetamol, one of the most widely used medicines for fever and pain relief. The facility has recorded cumulative production of ₹687 crore and provides large-scale domestic capacity for PAP, which was previously largely imported, strengthening backward integration in Paracetamol manufacturing.
Centrient Pharmaceuticals India Private Limited has established a greenfield Atorvastatin API manufacturing facility in Nawanshahr, Punjab, with an installed capacity of 206 MT per annum. The project involved an investment of ₹161.13 crore and has recorded cumulative production of ₹432 crore. Atorvastatin is a widely prescribed cardiovascular medicine used to lower cholesterol and reduce cardiovascular risk. The project has enabled development of a supply chain with over 80% domestic value addition, reducing dependence on imported key starting materials.
Strategic Impact and Significance
The commissioning of these facilities under the PLI Scheme reflects growing capabilities of Indian manufacturers across fermentation-based and chemically synthesised pharmaceutical inputs. The projects contribute to greater domestic value addition, import substitution, employment generation, and supply-chain resilience. They demonstrate how targeted policy support can encourage investments in strategically important pharmaceutical manufacturing segments, strengthen backward integration, and build indigenous technological capabilities while addressing concentrated vulnerabilities in India's antibiotic and essential medicine supply chains.