Around 240 new plants have emerged since the introduction of GST in 2017 . 40% of the plants were developed with the intention of supplying European markets .
AHMEDABAD: For a long time, new pharma plants in Gujarat, which have been designed to appeal to European markets, have been waiting to get EUGMP licenses.According to industry sources, the European regulator has a huge waiting list and the proposed plants will have their licenses only next year.After the introduction of GST in 2017, India's pharmaceuticals industry was on a par with other nations, according to Viranchi Shah, president of the Indian Drug Manufacturers Association.According to estimates, around 240 new plants have emerged since then.However, the EU Drug Regulatory Authority hasn't carried out any inspection since the Covid crisis, meaning that these plants have not yet received EUGMP clearance.Due to the delay in the implementation, these units have invested about Rs 5,000 crore and are not achieving the expected profitability.However, he said that Gujarat-based firms have found solutions and are exporting medicines to domestic and African markets.Shah said that many units have started producing generic drugs and have begun contract manufacturing as well. Our exports to the EU will increase from 18% to the present level.Corona Remedies Pvt Ltd, an Ahmedabad company, established a new plant near Bavla, with an investment of around Rs 100 crore, and started production last year.In September 2021, Corona Remedies CEO Nirav Mehta said, We applied for the EUGMP license.In general, a regulatory authority team visits the site within six months of receiving the permit, but an inspection has yet to be carried out. We have continued to supply to the domestic market, and we will begin exporting to Europe when we get the EUGMP license.According to sources, the European Drug Regulatory Authority will prioritize renewals of licences once it starts conducting tests, and then the process to issue new licenses will begin.Pashupati Group of Kadi has joined Uniza Healthcare in the pharma sector, and has developed a plant with a commitment of Rs 35 crore.According to the group, the plant adheres to EU requirements. As the visits of the EU Drug Regulatory Authority teams are no longer underway, we have not applied for the EUGMP license as of today, according to Saurin Parikh, the MD of Uniza Group.We have decided to apply for the EU licence only after the teams begin conducting inspections in India.