Multinational drug company Mylan has said it will invest $ one billion in the next 5-6 years on Capex in India, given the importance of the country’s position in world pharma supply-chain, and pitched for the government incentivising research and development activities.
Mylan Global President and Executive Director Rajiv Malik said the company had been investing close to about USD 400 million or USD 450 million towards Capex every year and half of it in India.
“Half of that has been invested in India as a rule of thumb. So we have invested about $200 – $250 million in India every year. During the last six or seven years we have invested more than one billion dollars in India to upkeep and expand the capacities, he said. As long as this network is there (in India), we have no other option but to continue to invest at the same pace. I would say in the next 5 to 6 years it (investment on capex) would not be less than one billion dollars, he said.
Mylan India’s journey started in 2007 after it acquired Matrix laboratories and at that point in time the company was predominantly a manufacturer of active pharmaceutical ingredients (API).
Currently Mylan has 21 facilities and 15,000 employees working in India.
Out of 44 plants we have today, India has 21 of those. So India is the backbone of the supply chain. We do about Rs 1,000 crore in the Indian commercial market, Malik said.
He said the Indian government needed to incentivise research and development activities being undertaken by pharma companies on drug development and new chemical entities, though the country upkeeps its leadership position APIs and formulations.