Mylan to invest $1 bn in India on capex in 6 years


HYDERABAD, Sept 29: Multinational drug company Myaln

has said it will invest USD one billion in the next 5-6 years

on Capex in India, given the importance of the country’s

position in world pharma supply-chain, and pitched for the

government incentivising research and development activities.

Mylan Global President and Executive Director Rajiv Malik

said the company had been investing close to about USD 400

million or USD 450 million towards Capex every year and half

of it in India.

“Half of that has been invested in India as a rule of

thumb. So we have invested about USD 200 -USD 250 million in

India every year. During the last six or seven years we have

invested more than USD one billion in India to upkeep and

expand the capacities, he told PTI.

As long as this network is there (in India), we have no

other option but continue to invest at the same pace. I would

say in the next 5 to 6 years it (investment on capex) would

not be less than one billion dollars, he said.

Mylan Indias journey started in 2007 after it acquired

Matrix laboratories and at that point in time the company was

predominantly a manufacturer of active pharmaceutical

ingredient (API).

Currently Maylan has 21 facilities and 15,000 employees

working in India.

Out of 44 plants we have today, India has 21 of those.

So India is the backbone of the supply chain. We do about Rs

1,000 crore in Indian commercial market, Malik said.

He said the Indian government needed to incentivise

research and development activities being undertaken by pharma

companies on drug development and new chemical entities,

though the country upkeeps its leadership position APIs and


According to him, during the initial few years,

investments on R&D would not generate revenues for any pharma

company and many Chinese companies are now focussing on the

activity and competing with large corporations in USA and the


That is where India needs to catch up. We will have to

incentivise the R&D. You incentivise and you create

infrastructure for the industry to do more R&D so that it is

not burdensome on companies, he opined.

Replying to a query, on the voluntary recall of certain

batches of blood pressure drug Valsartan from the USA market,

Malik said Mylan has addressed that issue and working with the

European and US Authorities.

This is not specific to Mylan alone. We have changed

the process to take care of that specific issue, the

executive said.

Out of an abundance of caution, these products have

been recalled due to detected trace amounts of an impurity,

N-nitrosodiethylamine (NDEA) a suspected carcinogenic

contained in the API Valsartan, USP, manufactured by Mylan

Laboratories Limited. (PTI)