Punjab Bureau of Investment Promotion www.investpunjab.gov.in

PHARMACEUTICALS

Table of Contents

India Scenario

Punjab: Emerging Pharmaceuticals Hub

Advantage Punjab: The Next Generation Investment & Innovation Destination

Investment Opportunities

INDIA SCENARIO

01 02

Largest Exporter of Generic Drugs

In highest number of U.S. FDA approved plants (664) outside USA

Key Highlightsst1 st1

Largest market for APIs globally

rd3

Ÿ Pharma industry contributes to 1.72% of India GDP

Ÿ Indian drug and pharmaceutical exports grew from USD 16.28 Bn to USD 22.15 Bn as on Feb '21.

Ÿ India’s domestic pharmaceutical market turnover reached USD 20.03 Bn (~INR 1.4 lakh Cr.) in 2019

Ÿ 3,000+ pharma companies with a network of over 10,500 manufacturing facilities

Ÿ Indian pharmaceutical sector supplies over 62% of global demand for various vaccines, 40 per cent of generic demand in the US and 25% of all medicine in the UK

Ÿ 100% FDI in greenfield projects and 74% in brownfield projects through the automatic route

Ÿ Strong financial assistance from government in various government driven initiatives such as National Heath Mission, PM Atmanirbhar Swasth Bharat Yojna, AYUSH.

Ÿ Assistance in the form of interest subvention against sanctioned loan to Small and Medium Pharma Enterprises

Ÿ Financial assistance of 70% of the project cost of USD 135 Mn (INR 1000 Cr.) for creation of common infrastructure facilities in any upcoming Bulk Drug Park promoted by State Governments/State Corporations

Ÿ Production linked Incentive Scheme to minimize import dependencies and achieve self reliance in bulk drug manufacturing space.

Ÿ Financial assistance of 70% of the project cost of USD 13.5 Mn (INR 100 Cr.) for creation of common infrastructure facilities in any upcoming Medical Device Park promoted by State Governments/State Corporations

Progressive Policies and Initiatives

Source: Annual Report 2019-20, Dept. of Pharmaceuticals Source: IBEF, Invest India, Make in India, National Accounts Statistics 2019

02

Key Trends

Accessibility Acceptability Affordability Epidemiological Factors

Over USD 200 bn (INR 15 Lakh Cr.)to be spent on medical infrastructure in the next decade. New business models

expected to penetrate tier-2 and

3 cities.

Rising levels of education to increase acceptability

of pharmaceuticals. Propensity to self-

medicate, boosting the OTC market. Acceptance

of biologics and preventive medicines to

rise.

Patient pool expected to increase over 20% in the

next 10 years. New diseases and lifestyle

changes to boost demand. Covid pandemic raises the importance of

immunity and health needs

Rising income and greater health

insurance coverage. Government schemes

such as Pradhan Mantri Bhartiya

Janaushdhi Kendra to provide free generic

medicines to citizens.

Branded Generics

Formulations Industry

Pharmaceuticals Ingredients

R&D Public Health

Occupies 70%-80% share of

the retail market

Largest formulations

exporter experiencing double-digit growth over next 5 years

API industry is rdranked 3

largest in the world

contributing 57% of APIs to prequalified list

of the WHO

Indian pharma companies

spend 8-13% of their total turnover on

R&D

Rising incomes, affordability of

drugs and increasing health

insurance penetration

provides impetus to Pharma

Source: IBEF, Invest India, Make in India, National Accounts Statistics 2019

03

PUNJAB: EMERGING PHARMACEUTICAL HUB

04

Pharmaceutical Industry Snapshot Punjab is home to some of the biggest names in API/Bulk Drugs/ Formulations sector. Multinational and Fortune 500 companies have chosen Punjab as their preferred investment destination

Institutes such as National Institute of Pharmaceutical Education & Research (NIPER), Institute of Microbial Technology (CSIR-IMTECH) & Institute of Nano Science & Technology (INST), All India Institute of Medical Sciences (AIIMS), Post Graduate Institute of Medical Research and Education (PGIMER) and Indian Institute of Science Education and Research (IISER) provide strong skilling and R&D to the Pharma industries in the State.

Annual Turnover of Pharma Units (2019-2020) USD - 1.2 Bn(INR 9000 Cr.)

More than 13,000+ (direct) jobs created

GSVA ContributionUSD 140 Mn (INR 1050 Cr.)(2017-18)

65+ API/Bulk Drug units90+ Formulations units

5% growth in State’s Index of Industrial Production from (2016 -2019)

Source: ESOP 2020, Drug Controller Punjab, IP-BFPIBEF, Invest India

05

Punjab : Pharma Exports

Top Countries for Pharma Exports

Region wise exports of pharma goods

USA

South Africa

Canada

United Kingdom

38 3948

69

130

0

20

40

60

80

100

120

140

FY 15 FY 16 FY 17 FY 18 FY 19

Share of Pharmaceuticals Goods export from the Punjab

Stood at USD 130 Mn (INR 975 Cr.) in FY 2019

EU

North America

Source: DGCIS EXIM Analysis CMIE, KPMG Analysis, www.esopb.gov.in

29%

24%8%

39%

ASEAN

Others

06

Presence of Complete Value Chain in the State

Sun Pharmaceuticals, Abryl Laboratories, Torque, Nectar Lifesciences are

the major formulation companies.

Existing Cluster in SAS Nagar and Derabassi.

Upcoming Pharma Park (Fatehgarh Sahib-130 acres) and a

Biotechnology Park.

SAS Nagar is home of many API manufacturers.

IOL Chemicals, Saurav Chemicals, Ind-Swift and PCCPL are the major bulk drug companies.

Upcoming Bulk Drug Park in Bathinda (1320 acres).

R&D

CSIR-Institute of Microbial Technology (IMTECH) is set-up to be a fore-

runner in the niche domain of microbial biotechnology.

Institute of Nano Science and Technology (INST), an autonomous institute of

Dept. of Science & Technology (DST), GoI, has been established under the

umbrella of NANO MISSION to boost R&D in the field of Nanoscience and

Nanotechnology.

AIIMS and PGIMER are premier medical and research institutions in the

State. The institutes are consistently ranked amongst the top institutes for

medical education in India and are “Institutes of National Importance”. These

institutes provide educational, medical research, and training facilities and

are a vital factor for sustenance and operation of the Pharmaceutical units in

the State.

NIPER has been a pioneer in the field of R&D in pharma sector. NIPER ranked st1 in National Instititute Ranking Framework (NIRF) ranking 2018 under

pharmacy category.

Indian Institute of Science Education and Research Mohali is one of the

seven Indian Institutes of Science Education and Research (IISERs),

established by the Ministry of Human Resources and Development (MHRD),

GoI, to research in frontier areas of science and to provide science education

at the undergraduate and postgraduate level.

Support services

Contract Research Organization (CRO): Parexel International in SP Infocity employs more than 2000 pharmacy professionals.

Active Pharmaceutical

Ingredients (API)

07

Key Pharma Cluster and Upcoming Parks in Punjab

Mohali- Derabassi Existing cluster of Pharmaceutical Industry

Wazirabad: Integrated Pharma Park (130 acres)

Bathinda Bulk Drug Park (1320 acres)

Upcoming Biotechnology Park at Mohali

Common Facilities

Supply of utilities such as Steam, Processed water, electricity under CFC

Industrial Gases & Solvents

Solvents recovery system

AI, IOT, Machine learning & 3D Printing facility

R&D, Incubation, Technology development, Up-gradation facility & Skill Development Centre

Analytical Testing facility

Social Infrastructure

ZLD- Zero Liquid Discharge treatment facility

Synthetic, Fermentation & formulation facilities

Warehouse & Logistics

08

NIPER- S.A.S. Nagar : Centre of Excellence

National Institute of Pharmaceutical Education & Research (NIPER) at SAS Nagar (Mohali), an Institute of National Importance, was set up in 1998. It is highly valued for its outcomes –namely well trained and focused human resources (students / researchers); publications of high impact and novel processes / outputs of industrial relevance in its chosen areas of working.

NIPER-S.A.S. Nagar

In 2019, the Institute published 81 articles in journals of repute

Research is carried out in the areas of Neglected diseases, Other diseases and on Drug development and formulation

MoUs signed in 2019 -Johnson & Johnson, Zoetis, Andijan State Medical Institute (ASMI) Uzbekistan and National Research Development Corporation (NRDC)

Carried out training for personnel from India and abroad under ITEC-SCAAP, SMPIC for pharmaceutical industries and PSUs like IDPL, BCPL, HAL, etc.

Patents and Commercialization: 190 Patents filed by NIPER/ 87 Patent granted to NIPER/ 08 Patents licensed till 2019

Till 2019, 3496 students have passed out (Masters 2579, MBA 597 & Ph.D. 320)

1 2 3

4 5 6

09

ADVANTAGE PUNJAB: THE NEXT GENERATION INVESTMENT AND INNOVATION DESTINATION

10

Punjab: Strategically Located & Well Connected

Kolkata

PUNJAB

Mumbai

Proximity to National Capital

NEW DELHI150 Miles

4 Hrs

55 Min

Bengaluru

Hyderabad

Chennai

Connected to allmajor metro cities

Connected to Freight Corridorfor easy movement of goods

Delhi NCR

11

• 100% Road Connectivity

• All Major Towns Connected with

4/6 Lane Highways

• Road Density 2 times higher than

National Average

nd• 2 highest rail density in India

Robust Connectivity

AMRITSARINTERNATIONALAIRPORT

DOMESTIC AIRPORTSJalandhar, Ludhiana, Bathinda, Pathankot

MOHALIINTERNATIONALAIRPORT

COMING SOONINTERNATIONAL AIRPORT@ Ludhiana

Sharjah (4 hrs)

London (9 hrs)

Tashkent (2.5 hrs)

Dubai (4 hrs)

Birmingham (9 hrs)

Doha (4.5 hrs)

Kuala Lumpur (6 hrs)

Singapore (6 hrs)

Dir

ect

Fli

gh

ts A

va

ila

ble

fro

m

Am

rits

ar

& M

oh

ali

4

12

ndRanked 2 in Ease of Logistics in India

Source: LEADS Index 2019, Government of India

DEDICATED FREIGHT

CORRIDORs

[Eastern & Western]

(Intersection Point – Dadri)

Max Speed to increase

46 to 62 Miles/Hr

Load Capacity Per Train to increase

5300 to 13000 tonnes

Estimated reduction in Freight Cost

By 33%

Ranked Best in India on Safety & Security of Cargo Movement

Dankuni West Bengal

AmritsarPUNJAB

Rajasthan NewDelhi

UP

Gujarat

MumbaiMaharashtra

AKIC

MULTIMODAL

LOGISTICS PARKS,

Ludhiana• Adani Logistics Ltd.

• Hind Terminal Pvt. Ltd.

(Sharaf Group, UAE)

• Punjab Logistics

Infrastructure Ltd (PLIL)

Land & Railway Port

Amritsar

5 ICDs• Amritsar

• Jalandhar

• Ludhiana

• Bathinda

• Derabassi

13

Quality Power at Low Cost

ABUNDANT LOW COST

Power @ INR 5.00

per unit (VC)

Power Surplus

Installed Capacity

14,204 MW

No Shortage even during peak hours

QUALITY

T&D Losses

14.11 %National Average 22 %

Peaceful & Competitive Workforce

PEACEFUL

Reforms in Labour laws

No Lockouts

No Strikes

Flexibility In Hiring

FRIENDLYRanks 3rd on

Interstate Migrant

Policy Index 2019

REFORMS24x7

Shifts Allowed

Across Genders

No disruptions in working environment

Peak Demand (MW) Peak Met (MW)

Month –wise power supply 2019-2020 (in terms of peak demand and availability)

Ÿ Firms employing <=300 workers can retrench/shut without Government’s permission

Ÿ Workers overtime has been increased to 13 hrs and quarterly overtime limit to 115 hour

Ÿ Amendments in rules of Contract Labour Regulation & Abolition Act 1970 will be applicable on any Establishment/Contractor employing 50+ workers instead of 20+ worker earlier on any day of the proceeding 12 month as contract labouretc.

0

2000

4000

6000

8000

10000

12000

14000

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20

14

Safest Place to do Business

*Source: As per NCRB 2019

Recorded Lowest Share of Cognizable Crime amongst major industrialized states

of India

Rate of Cognizable Crimes (2019)

Punjab

Karnataka

Uttrakhand

Himachal Pradesh

Odisha

Uttar Pradesh

Andhra Pradesh

Chattisgarh

Telangana

Rajasthan

Maharashtra 415.8

478.9

577.4

392.3

352

334.7

278.6

278.2

277.9

272.4

252.8

248.1

243.3

1.4

1.9

2.4

2.5

2.8

3.2

3.2

3.6

5.2

5.9

7.7

8.4

8.8

8.8

9.9

12.2

Punjab

Chattisgarh

Odisha

Telangana

Andhra Pradesh

Haryana

Karnataka

West Bengal

Bihar

Rajasthan

Madhya Pradesh

Gujarat

Kerala

Tamil Nadu

Maharashtra

Uttar Pradesh

Percentage Share of State for Cognizable Crime in India (2019)

Madhya Pradesh

Haryana

15

Competent Human Capital

Some Leading Institutions

PTU, Jalandhar

INST

LPU, Jalandhar

IIM, Amritsar

NIPER, Mohali

Particulars No. Of Institutes Total Annual Graduates

D. Pharma 103 6,224

B. Pharma 47 3,085

M. Pharma

(upcoming)

26 818

State has 27 Public & Private Universities, 89 Engineering Colleges,

11 Medical Colleges, 200 Management Institutes and 344 ITIs

AIIMS, Bathinda

Guru Nanak Dev

Univeristy

Indian School of Business

MohaliIIT, Ropar PEC,

Chandigarh

Thapar Institute of

Engineering & Technology

Chitkara University

PGIMER

B.R Ambedkar

NIT, Jalandhar

GNDU

Courses offered

Medicinal Chemistry Pharmaco Informatics Pharmaceutical Technology

Biotechnology Pharmaceutical Analysis Process Chemistry

3000+

graduates in Pharmacy

6000+

students trained in Diploma Pharmacy

IISER, Mohali

16

Attractive Incentives for Anchor Units

Other Incentives

100% Exemption

Electricity Duty

(15 yrs) Stamp Duty CLU/EDC

NET GST REIMBURSEMENT FOR 15 YEARS ON

BOTH INTER & INTRA STATE SALES

Up to 200 % of FCI

EMPLOYMENT SUBSIDY UP TO USD 640 (INR 48,000) PER EMPLOYEE PER YEAR

FOR 5 YEARS

USD 26.7 Mn (INR 200 Cr.)1000

Anchor Unit

Minimum Investment (FCI)

ORMinimum Direct

Employment

Pharmaceuticals

BiotechnologyLife Sciences

Variable Electricity Tariff

Frozen at USD 0.07 ( INR 5) per unit till 2022

17

Punjab Bureau of Investment Promotion (Invest Punjab)

CEO, PBIP

LARGE

DISTRICT

DC

MSME

STATE

LEVEL

AUTHORITY

UNITS

DIGITAL APPROVALS

DEDICATEDRELATIONSHIP

OFFICER

TOP PERFORMING State Investment Promotion Agency Of India

INVESTMENT PROMOTION

AGENCY

UNIFIED REGULATOR(23 Departments)

INVESTMENT PROMOTION

FISCAL INCENTIVE APPROVALS

REGULATORY CLEARANCES

INVESTMENT FACILITATION

ONE STOP OFFICEADVANCED SINGLE WINDOW SYSTEM

ONE OF ITS KIND IN INDIA

- Government of India

18

Trilium Mall

Leisure Spaces

Hotels

Hospitals

Schools

Night Life

Weekend Getaways

Modern Infrastructure• Amongst the top 5 states in density of

colleges & universities

Ranks 2nd on National Health Index

• 3rd in Governance & Political stability

Peaceful Environment• Abundant green spaces around settlements

nd• 2 in India Happiness Report 2020

• Low Crime Rate of only 1.4% of total

crimes among major Industrial states of India

Shimla -130 km Chail - 106 km Kasauli - 54 km Amritsar - 225 km

Management, Organisation and Innovation (MOI) Survey // As per NCRB 2019 Source : NCAER 2018 // Niti Aayog 2018

Ensuring quality of life

19

INVESTMENT OPPORTUNITIES

20

Investment Opportunities

Active Pharmaceutical Ingredients/ Bulk drugs

Generics Medicines

Biotechnology

Nanotechnology

Formulations

R & D Centers

Contract Research

Pharmaceutical Consultancy

Medical Devices

Logistics & Warehouses

Incubation Centers

Dietary Supplements

21

Investors Voice

We also plan to invest Rs. 500 crores towards expansion of our facilities

during the next three financial years.

Sun Pharma has positive experience of working with the Government

of Punjab and setting up two of its manufacturing facilities in the State

with a total investment of more than INR 1,000 crores. As a result of

sound infrastructure in the State, like quality educational institutions and

world-class healthcare facilities, it has been easier for Sun Pharma to

retain its skilled workforce. We are also very happy with the good work

culture in the State and the availability of trained manpower.

Dilip ShanghviManaging Director

SUN PHARMACEUTICAL INDUSTRIES LTD.

The team of Invest Punjab was very collaborative & supported us

from inception of Project. For one of our associate companies, we

filed a request for a new plant in August 2018 and were allotted land

within a short span of 2 months only. The project commercialized in

April 2019. The facilitation provided by Invest Punjab has incentivized

us to expand operations in the state. We would like to thank

Government of Punjab for its investor friendly policies that have

propelled growth of businesses in the state.Varinder GuptaManaging Director

IOL CHEMICALS & PHARMACEUTICALS LTD

22

Investors Voice

As soon as we step in the office, we can feel the ambience of the

Invest Punjab it is full of positive energy. The Invest Punjab office

regularly follows up on the progress of the project at each stage. Team

of Invest Punjab is very open to listening from investors and provides

appropriate solutions. With strong support from Invest Punjab we are

looking forward for timely grant of all our regulatory approvals to our

expansion project which is underway and going to complete soon..Dr. S Vijaya Kumar

Site Director

Since the inception of our project, the team of Invest Punjab

has been extremely supportive. Whether it was getting regulatory

clearances from various government offices or helping out with

applications, Invest Punjab has ensured that we always have a

smooth and hassle free experience. The team is extremely

competent and possesses in depth knowledge of all government

regulations. We are forever indebted to the timely support offered

by Invest Punjab.Jayant SinglaDirector

ABRYL LABORATORIES PVT. LTD.

CENTRIENT PHARMACEUTICALS INDIA PVT. LTD.

23

Major Pharmaceutical Sector Players in Punjab

24

Notes

Notes

Invest Punjab, 2nd Floor, Udyog Bhawan, Sector -17, Chandigarh, 160017 Punjab, India

Email: info@investpunjab.gov.in | Website: www.investpunjab.gov.in

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