Page 155 - CW E-Magazine (4-2-2025)

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
availability. India imported 4.84-mn bar-
fi rst time in nine years, while top supplier
late 2024 as Russian supplies fell. The
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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