The new facility is part of GSK’s strategic plan to rationalize, streamline and reduce costs in the supply network, while increasing capacity to meet the growing demands for important medicines, GSK said in its annual report. Photo: AFP
The new facility is part of GSK’s strategic plan to rationalize, streamline and reduce costs in the supply network, while increasing capacity to meet the growing demands for important medicines, GSK said in its annual report. Photo: AFP

GSK begins work on greenfield pharma plant in Karnataka

The `1,000 crore-facility will make more than 8 bn tablets and 1 bn capsules a year in the areas of gastroenterology and anti-inflammatory medicine

Hyderabad: Glaxosmithkline Pharmaceuticals Ltd, the Indian unit of UK-based Glaxosmithkline Plc (GSK), on Tuesday said it has started work on its largest greenfield tablet manufacturing facility in Vemgal in Kolar district, Karnataka, with an estimated investment of 1,000 crore.

The facility, coming up on a 50-acre site, will make more than 8 billion tablets and 1 billion capsules a year in the areas of gastroenterology and anti-inflammatory medicine. It will be fully operational in 2017, employing about 250 people.

This new facility is part of GSK’s strategic plan to rationalize, streamline and reduce costs in the supply network, while increasing capacity to meet the growing demands for important medicines, GSK said in its annual report.

It includes a warehouse, site infrastructure, employee welfare centre and utilities to support the manufacturing and packing of the medicines.

GSK said it chose Vemgal for reasons including availability of skilled staff, proximity to southern distribution hub, moderate climate, easy accessibility, availability of state based investment incentives and government land.

“We fully support the government in their efforts to increase access to affordable medicines to improve healthcare and we are very excited to begin work on what will become our largest manufacturing facility in India," said Annaswamy Vaidheesh, managing director, GlaxoSmithKline Pharmaceuticals.

GSK which markets popular brands like Zinetac, Calpol, Neosporin, Betnesol, Zyloric, Zentel, and Cetzine in India, reported a a turnover of 2,653 crore for the year ended 31 March and a market share of 3.48%.

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