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Pharmaceuticals                                                                                                                                                                     Hydrocarbons


       BRIGHT OUTLOOK                                                                                                GROWING DEMAND
       ‘Global opportunities beyond generics opening up                                                              India’s natural gas consumption rises 11% in 2024,

       for Indian pharma sector driven by China+1 strategy’                                                          driving LNG imports


          India is poised to capture a bigger                             biotechnology, digital health, and Med-       India’s gas use surged 11% in                                    April-November  period from 50% a
       share of the global pharmaceutical                                 Tech. Of the total investments, $9.5-bn    2024, boosting LNG imports to satisfy                               year earlier. In the same period, LNG
       manufacturing market beyond generics,                              has been allocated to pharmaceuticals      growing demand. Industries and                                      imports expanded 21%. India has seven
       according to a report by Boston Con-                               and biotechnology, while health servi-     oil  refi neries  led  the  increase,  but                           LNG import terminals with a combined
       sulting Group (BCG).                                               ces have received $12.1-bn.  Digital       homes, businesses, and transportation                               capacity of 47.7-mn tonnes per annum
                                                                          health has experienced  remarkable         also saw double-digit growth due to                                 (mtpa). Petronet  LNG’s  terminal at
          The  report highlighted that the                                growth, securing  $4.6-bn in  invest-      relatively lower imported gas prices,                               Dahej in Gujarat is the country’s largest
       “China+1” strategy, which involves                                 ments,  with $3.8-bn of that  amount       according to a gas market report by                                 with a capacity of 17.5-mtpa and ope-
       companies  diversifying operations                                 fl owing in over the last fi ve years.       Paris-based  International  Energy                                  rated at about 102% this fi scal year, up
       beyond China, has opened doors for other                                                                      Agency (IEA).                                                       from 94% in  April-November 2023.
       Asian countries, including India. This  opportunity,” the report said. As pharma-  The report also mentioned  that                              by 85%, while the number of cargoes  Shell’s  terminal at Hazira in Gujarat
       shift is driving investments into India’s  ceutical companies look to reduce  Singapore and India have emerged as   Industrial gas consumption rose  not awarded decreased  by 20%.” India  and Gail’s at Dabhol in Maharashtra
       pharma  sector, enabling  it to expand  reliance on China, India is emerging  leading hubs for healthcare innovation   22%, refi ning by 26%, residential and  aims to increase natural gas’ share in its  operated  at about 41% and 39%, res-
       beyond its traditional focus on generic  as a key player in the global supply  and investment in the region, attracting   commercial use by 14%, and trans-  energy mix to 15% by 2030, up from  pectively this fi scal year. Their utilisa-
       drugs.                            chain. Indian pharmaceutical services  signifi cant funding and playing pivotal   portation by 12%. Extreme heat from  under  7% currently. The  IEA projects  tion improved by 4-6%.
                                         are 20 percent cheaper than those  roles in transforming the sector. Since   May to July also drove a 32% jump in  8% growth in India’s gas demand this
          “India to capture a larger share  offered by China, making the country  2018,  private equity investments in   gas use for power generation as people  year, assuming typical weather, fuelled   Four of India’s seven terminals – at
       of global pharma manufacturing,  an attractive destination for manufac-  Asia’s pharma and biotech sectors have   used more air conditioning.  The  by economic  expansion and energy  Kochi, Ennore, Mundra and Dhamra –
       expanding beyond generics...  As  turing operations.               totalled  $20-bn, with India receiving     report stated, “This demand growth  needs.  However,  falling domestic gas  operated at less  than 25%  even this
       pharmaceutical companies look to                                   $5-bn. The report outlined that Asia’s     led to a 21% year-on-year rise in LNG  production creates  a  challenge as  fi scal  year  but  there  were  signifi cant
       diversify their investments and manu-  The report also identified four  healthcare market is projected to reach   imports, supported by average spot LNG  demand climbs.          improvements  at Indian Oil’s Ennore
       facturing operations beyond China,  major sectors for healthcare investments:  $5-trillion by 2030,  contributing 40   prices in India that were more than                        (from 17% to 24%) and GSPC’s
       Indian players are capitalising on this  health services, pharmaceuticals and  percent of global sector growth.   12% lower than a year ago.” It added,  LNG terminal utilisation rises  Mundra (from 12% to 24%) terminals.
                                                                                                                     “In 2024, the number of LNG cargoes   According to oil ministry’s data,  Despite lower utilisation, India plans to
       NMC starts probe against doctors over AbbVie-                                                                 tendered for delivery (both supplier  rising natural  gas import  is boosting  add another 20-mtpa of LNG terminal
                                                                                                                     offers and user invitations) in India  capacity  utilisation at India’s  LNG  capacity  over the next few years.
       sponsored foreign trips                                                                                       increased by 70% year-on-year.  The  terminals underutilised for years. Aver-  Terminal builders are betting on strong
                                                                                                                     number of cargoes awarded increased  age utilisation expanded to 56% in the  future demand for imported gas.

          The National Medical Commission  healthcare  professionals, which is in  misconduct by the doctors. The UCPMP   TRADE TRENDS
       (NMC) has begun its probe against  contravention  of the ethics code.  The  forbids pharmaceutical companies from
       the doctors whose foreign vacations to  department  had also asked the NMC  offering  travel  and hospitality  to any   OPEC’s share in India’s annual crude oil imports
       Monaco and Paris were sponsored by  to undertake action for  professional  healthcare professional.
       a multinational pharma company.  The                                                                          rises after 8-year drop
       Department of Pharma (DoP) had recently
       reprimanded AbbVie  Healthcare  for  Torrent Pharma’s Q3 profi t up 14%                                           OPEC’s share  in India’s crude  oil   supply from the world’s No. 2 producer   Indian refi ners have stepped up pur-
       unethical marketing practices after an apex                                                                   imports edged up in 2024, rising for the   to India and China and tightening ship   chases of Middle Eastern  grades since
                                                                                                                                                                                         late  2024 as Russian supplies fell.  The
                                                                                                                                                       availability. India imported 4.84-mn bar-
                                                                                                                     fi rst time in nine years, while top supplier
       committee formed to investigate the case   Ahmedabad-based Torrent Pharma-  the third quarter, its net sales grew by   Russia’s share remained steady, a Reuters   rels per day of oil in 2024, up 4.3% from   share of Middle  Eastern  oil  in India’s
       found that the company violated provi-  ceuticals, the fl agship company of the  2.6 percent to Rs. 2,762-crore, for the   report said quoting data obtained from   the previous year, the data showed.  December crude imports rose to a
       sions of the Uniform Code for Pharma-  Torrent Group, has reported a 14 per-  same period. While the revenues from   trade sources.                                               22-month high to about 52%, the data
       ceutical Marketing Practices (UCPMP)  cent year-on-year growth in profi t after  its India business grew 12 percent for                             The share of Organization  of the   showed. However, Russia continued  to
       by sponsoring foreign vacations to  tax (PAT) for the third quarter of the  the third  quarter, the revenues from   Russia’s share in the world’s   Petroleum Exporting Countries (OPEC)   be the top oil supplier to India, followed
       Monaco and Paris for 30 doctors.  fi nancial year 2024-25.          Brazil and the US, fell by seven percent   third-biggest oil importer and consumer   in India’s 2024 crude imports rose to   by Iraq and Saudi Arabia in December.
                                                                          and one percent, respectively. Revenue     is expected to drop in 2025 after US   nearly 51.5%, up from 49.6% in 2023,   OPEC’s share has been consistently
          The company is  under the scan-  While the company’s consolida-  from Germany rose by 4 percent for the    announced  sweeping  sanctions  targeting   while Russia’s share in 2024 remained   declining  since  2016  as  Indian  refi ners
       ner for spending over Rs. 1-crore on  ted  profi ts  rose  to  Rs.  503-crore  for  third quarter.             Russian producers and tankers, disrupting   at about 36%, the data showed.  diversifi ed their purchases to reduce costs.

       154                                                                   Chemical Weekly  February 4, 2025       Chemical Weekly  February 4, 2025                                                               155


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