Prime Minister Narendra Modi is set to inaugurate a Penicillin-G (Pen-G) production plant in
Andhra Pradesh, reviving domestic antibiotic manufacturing after a gap of three decades.
The Penicillin-G plant, located in a Special Economic Zone (SEZ) in Kakinada, Andhra
Pradesh, has a production capacity of 15,000 tonnes per year. Additionally, the facility can
produce 180,000 tonnes of glucose annually, and a 6-Amino Penicillanic Acid (6-APA) plant
within the complex has the capacity to produce 3,600 tonnes annually, according to a
statement from the pharmaceutical company.
Industry sources revealed that Hyderabad-based Aurobindo Pharma has cleared all hurdles
and is set to begin large-scale production of Penicillin G. The company has already started
producing small batches and aims to achieve full-scale production of 300 metric tonnes by
the year’s end. Penicillin G is a key ingredient used in the production of various antibiotics,
and India has been dependent on imports from China since it ceased domestic production
three decades ago.
The Penicillin-G facility in Kakinada, along with its glucose, 6-APA, and granulated
products, will be used for both domestic supply and exports. The company also plans to
export vials and ampoules from its new plant.
Industry experts noted that approximately 30,000 metric tonnes of Penicillin is imported
annually from China. “China managed to dominate global production, including in India, due
to extensive government support, such as subsidies, infrastructure, favorable regulatory
policies, and affordable labor,” commented an expert.
In 2021, the Indian government launched a Production Linked Incentive (PLI) scheme aimed
at boosting domestic manufacturing of active pharmaceutical ingredients (APIs) and key
starting materials (KSMs). The initiative is designed to encourage the export of these raw
materials while reducing reliance on China. The PLI scheme focuses on critical
fermentation-based products, including Penicillin, Cephalosporin, clavulanic acid (used to
treat bacterial infections), and erythromycin thiocyanate (anti-infectives).
India’s pharmaceutical industry is the third largest globally, but it remains heavily reliant on
China for essential raw materials. The PLI scheme aims to reduce this dependency and ensure
a stable domestic supply of bulk drugs and APIs, according to industry insiders.
In addition, Mumbai-based Kinvan Pvt Ltd has begun producing clavulanic acid, a key API
used in the popular antibiotic Augmentin.
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