Page 151 - CW E-Magazine (3-10-2023)

Pharmaceuticals Hydrocarbons

CONCERNS OVER QUALITY GROWTH TARGET

Government likely to mandate annual audit of pharma Oil India aims to drill over 60 wells to reach 4-mt

raw material suppliers by drugmakers crude output

The government is likely to make it pharmaceutical-grade products, Reuters State-run exploration and produc- we plan to drill 60 plus wells,” Mr. Rath OIL is about to place the LoA and the
mandatory for drugmakers to audit their had reported earlier. The drugmakers tion (E&P) fi rm, Oil India Ltd. (OIL), added. initiative will come on stream by Q4
raw material suppliers at least once a have denied allegations that their pro- is looking to drill more than 60 wells FY24 or early FY25.
year, a Reuters report has said. Currently ducts were responsible for deaths. in the current fi nancial year from 45 in Raising output
such audits are done occasionally after FY2022-23. The company, which was Elaborating on the company’s “We are also hopeful that by
events, such as a product recall. Drugmakers will also have to inform accorded the Maharatna status recently, strategy to increase output, the CMD December 2023, we will have the gas
their licensing authorities, generally the aims to surpass 4 million tonnes (mt) in said that OIL has already placed the pipeline getting connected from the
According to the report, drug regu- drug regulator of the state where they are crude oil production and 5 billion cubic letter of award (LoA) for two addi- Kumchai fi eld to the main producing
lator, the Central Drugs Standard Con- based, of all product recalls, the CDSCO metres (bcm) of gas output by FY25. tional drilling rigs and has extended areas. We are also looking at a couple
trol Organisation (CDSCO), conveyed presentation showed. Health experts the current tenure of the rigs already in more development wells, which will
the decision on mandatory audits for ceuticals industry, one of the world’s have previously criticised the lack of Speaking to reporters, OIL’s CMD operation. Besides, the company has come on-stream. Out of the 5-6 fi elds
raw material and packaging material largest,” the report stated. The World data on product recalls after some Mr. Ranjit Rath said that a target is also gone to the market to source more that we have identifi ed, three have been
suppliers in a meeting with industry Health Organization (WHO) and other Indian companies were given drug export always aspirational. “If a target is not drilling rigs. given through production enhancement
representatives on September 15. health agencies linked contaminated licences by their home state, despite pre- aspirational, then it is not a target. Oil contracts, and they will start producing.
India-made cough syrups to the deaths vious violations in other states. Through India’s aspiration aided it to raise pro- “We are now looking at near-fi eld We have identifi ed Lakwagaon as one
“The new mandate, along with of 70 children in Gambia, 65 in Uzbeki- the new regulatory steps for pharma duction to 3.2-mt in FY23,” he said. exploration, which we strongly believe of our focus areas. Sesabil area in the
additional testing rules for cough syrup stan and at least six in Cameroon over products, India wants to build “trust In FY2022-23, its cumulative oil pro- will create more prospectivity and more Assam Shelf Basin, which was a dis-
exports implemented in June, shows the past year. Some Indian drugmakers and confi dence on quality” and reduce duction rose 5.5 percent y-o-y to 3.176-mt wells. We are also looking at infi eld covery reported in January this year,
that India is seeking to reassure buyers were buying key ingredients from sup- “product failure”, among other things, against 3.010-mt in FY22, which is the locations within the producing fi elds, would also have a couple of more drill-
about the safety of its $42-bn pharma- pliers who did not have a license to sell the presentation said. highest in the last four years. which would be a sure shot production ing possibilities,” Mr. Rath noted. OIL
possibility and that will add to output,” is also looking at Baghjan as a potential
APPROVAL “In FY23, we drilled 45 wells and he added. gas fi eld and there is already a sign of
this year (FY24), in the main producing more production from the company’s
Cabinet clears Advent’s acquisition of Suven Pharma area, Assam and Arunachal Pradesh, For its hydro-fracking initiative, Rajasthan fi elds, he added.

for Rs. 9,589-crore FUTURE OUTLOOK
The Cabinet Committee on Eco- Advent will also launch an open offer (LPs). The Advent Funds are managed Indian gas utilities sector returning to normalcy: ICRA
nomic Affairs headed by Prime Minister for an additional 26% of the company. by US-based Advent International. The Indian gas utilities sector, after Godavari Basin, which is likely to “The gas consumption in India
Narendra Modi has approved the FDI facing signifi cant volatility in prices keep the reliance on LNG in check. is expected to grow by 6-7% YoY in
proposal for foreign investment of up The government in a statement said As per the extant FDI Policy, 100% and issues on the availability of liqui- The city gas distribution (CGD) and FY2024 over a low base, supported by
to Rs. 9,589-crore in Suven Pharma- the aggregate foreign investment may foreign investment is allowed under fi ed natural gas (LNG) over the last two the fertiliser sectors will continue to softer LNG prices and an uptick in the
ceuticals by private equity fi rm Advent increase up to 90.1% in Suven Pharma- automatic route in greenfi eld pharma- years, is now returning to a tentative drive the demand growth owing to domestic gas production. The fertiliser
International through its Cyprus-based ceuticals. The statement added the ceutical projects. In brownfi eld pharma- state of normalcy, according to ratings favourable policy support. ICRA expects sector will continue to remain the larg-
Berhyanda Ltd. approval has been granted after exa- ceutical projects, FDI upto 74% are agency, ICRA. the demand from the industrial sector est consumer, supported by ramp-up of
mination of the proposal by depart- allowed under the automatic route and
Advent International has entered ments concerned, RBI and SEBI and government approval is required for to witness a healthy uptick amid soft new fertiliser plants that were commis-
The gas offtake by the domestic LNG prices and increasing domestic sioned in H2 FY2023,” said Mr. Sabya-
into a defi nitive agreement in Decem- is subject to the fulfi lment of all rules investment beyond 74%. market is supported by softening LNG gas production. The CGD sector has sachi Majumdar, Senior Vice President
ber last year to acquire a 50.1% stake and regulations as applicable in this prices, uptick in domestic gas supplies, benefi tted from the implementation and Group Head, Corporate Ratings,
in Hyderabad-based Suven Pharma- regard. Total FDI inflows in the pharma and a regulatory push by the govern- of the Kirit Parikh Committee recom- ICRA Ltd.
ceuticals, a listed contract research ceutical sector has been Rs. 43,713-crore ment. mendations in April 2023, resulting in
and manufacturing services (CRAMS) The entire investments in foreign during the last five years (from the lowering of domestic gas prices, Mr. Majumdar added that the demand
fi rm promoted by Mr. Venkat Jasti investor company, Berhyanda are held 2018-19 to 2022-23). The sector has The domestic production is pro- thereby improving the cost economics from the CGD sector is underpinned by
and his family members for Rs. by Advent Funds, which pool invest- witnessed signifi cant growth in FDI of jected to witness healthy growth in for CNG and PNG(d) vis-à-vis alter- the CNG segment, which remains robust
6,313-crore paying Rs. 495 per share. ments from various Limited Partners 58% in the last fi nancial year.
FY2024, primarily from the Krishna- nate fuels. owing to the strong economic advantage

150 Chemical Weekly October 3, 2023 Chemical Weekly October 3, 2023 151

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