PM Modi inaugurates Lyfius Pharma’s Rs 2,500cr Penicillin-G facility in Kakinada

Prime Minister Narendra Modi inaugurated Lyfius Pharma‘s flagship Penicillin-G manufacturing facility in Kakinada, Andhra Pradesh, marking a major milestone for India‘s pharmaceutical industry. The facility, with a production capacity of 15,000 metric tonnes, is set to bolster domestic output of key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs) crucial for antibiotics. This initiative aligns with the government’s Production Linked Incentive (PLI) scheme, which aims to increase India’s self-sufficiency in pharmaceutical manufacturing and reduce reliance on imports.

The inauguration event, attended by key Union Ministers including Jagat Prakash Nadda and Mansukh Mandaviya, underscored the government’s commitment to boosting domestic pharmaceutical production. The ₹2,500 crore investment into this state-of-the-art facility highlights Lyfius Pharma’s dedication to becoming a cornerstone in the ‘Atmanirbhar Bharat’ initiative, which aims to make India a global leader in pharmaceuticals.

Mr. M.V. Rama Krishna, Director of Lyfius Pharma, noted that the Penicillin-G facility would not only cater to the domestic market but also position India as an exporter of high-quality pharmaceutical ingredients. According to Rama Krishna, this investment reinforces Lyfius Pharma’s commitment to strengthening India’s position in the global pharmaceutical industry while supporting the nation’s healthcare security.

The Kakinada facility, a pioneering development in fermentation-based antibiotic production, features advanced fermenters and automated starch and glucose plants. Such infrastructure is expected to drive both production efficiency and quality control, meeting stringent international standards. The facility will reportedly commence full-scale production by fiscal year 2025, which industry experts predict could further attract foreign direct investment (FDI) in India’s pharmaceutical sector, enhancing local expertise and production capabilities.

Lyfius Pharma’s decision to establish the Penicillin-G facility in Kakinada not only supports the Indian government’s broader goal of pharmaceutical self-sufficiency but also exemplifies the benefits of public-private partnerships in strengthening the nation’s industrial base. As one of the largest antibiotic manufacturing plants in India, this facility is anticipated to meet a significant portion of the domestic demand for Penicillin-G, a vital antibiotic component, thereby reducing India’s dependence on imports.

The PLI scheme, initially launched to incentivize domestic pharmaceutical production, has attracted significant investments from companies like Lyfius Pharma. By supporting local manufacturing, the scheme addresses India’s vulnerability to global supply chain disruptions, a factor underscored during the COVID-19 pandemic. Experts agree that such developments could be pivotal in establishing India as a preferred manufacturing destination for pharmaceutical ingredients.

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Industry analysts suggest that Lyfius Pharma’s facility could transform the local pharmaceutical landscape by attracting both talent and technological advancements. The facility’s cutting-edge design and automation, they add, are likely to serve as a model for similar projects across India.