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| Ireland eyes investment from Indian drug makers |
| Sohini Das / Mumbai/ Ahmedabad Sep 24, 2010, 00:27 IST |
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IDA Ireland, the country’s inward investment agency, seems to be keen to attract investments from Indian pharmaceutical companies into Ireland. With most Indian pharma firms looking to crack the EU market, Ireland hopes to offer itself as an attractive investment destination to set up on-shore manufacturing units.
“We have been in talks with the top 20 Indian pharmaceutical companies who are mulling a new site in EU. Now that Indian companies are looking at entering the EU market, having a manufacturing site in a European country definitely helps their brand value in these markets. Moreover, if one manages to get approval from the Irish Medicine Board, an USFDA approval becomes easier,” said Minakshi Batra, Director-India, IDA Ireland.
She added that with the burgeoning pharma industry in Gujarat, the region is definitely a special focus area for IDA.
Outlining some of the advantages that Ireland presents to domestic pharma companies planning to fly abroad, Batra said, “Ireland has a flat corporate tax rate of 12.5 per cent, and a 25 per cent R&D and holding company legislation among others.”
Already three lifesciences companies from India have started operations in Ireland, including heavy-weights like Ranbaxy, Reliance Lifesciences and Wockhardt. “Ranbaxy makes five to six generic drugs for the EU market from its Irish facility and employs around 85 people there. Wockhardt, on the other hand, took over from Pinewood Laboratories in Ireland to start operations in the country,” Batra added.
While she declined to name Gujarat based companies that IDA was in negotiations with, she, however, clarified that “Indian companies are now in a wait and watch mode, and we do not expect any immediate investment within the next six to eight months unless an acquisition works out.”
Indian FDA in Ireland, is not significant so far. US contributes for nearly 75 per cent of the over 1000 multinational companies that operate out of Ireland, and the EU constitues around 15 per cent. India has now started strengthening its presence on Irish soil through IT and ITeS companies like HCL,Tech Mahindra and Patni Computers. According to IDA, around $100 million Indian investment is expected in Ireland.
Ireland exports lifesciences products and services to the tune of nearly 45 billion euros annually to countries in Africa, Middle East, EU apart from the US. The sector roughly employs around 44,000 people and is divided into three major verticals including pharmaceuticals, biotechnology and medical technology.
Pharmaceuticals alone account for nearly 34 billion euros worth exports out of the country’s net 45 billion euros export kitty.
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