Chandigarh-Hub of Pharma Companies

Chandigarh-HUB of Pharma Companies

Why Chandigarh is a HUB of Pharma companies? This article will help you understand this:

Himachal Pradesh is home to multiple pharmaceutical companies who have established manufacturing plants and R&D hubs in the state. The town Baddi in Solan district in Himachal Pradesh is Asia's biggest Pharmaceutical hub and is home to some of the largest pharmaceutical companies such as Intas Biopharmaceuticals, Cipla, Cadila Pharmaceuticals, Ajanta Pharma, Abbott Laboratories Ranbaxy Laboratories etc. besides hundreds of other companies. Besides Baddi, there are many other smaller hubs in the state of Himachal Pradesh.

Manufacturing Units in Baddi

Baddi's fortunes began to change when tax incentives were announced for the hill state of Himachal Pradesh in 2003 to attract investments to special-category states. The major attractions for investors included 100 per cent excise duty exemption for 10 years from the date of commencement of commercial production (the budget for 2011-12 stipulated that it would apply to industries starting on or before March 31, 2007); 100 per cent income tax exemption for an initial period of five years and 30 per cent thereafter for a further period of five years; and a capital investment subsidy of 15 per cent on plant and machinery subject to a ceiling of Rs 30 lakhs, applicable also to existing units. These incentives led to very fast growth of Pharma manufacturing plants (besides many other industries) in Baddi and other areas of Himachal Pradesh. Majority of the well established pharmaceutical companies established their new plants here. In a similar manner, these incentives led to establishments of pharmaceutical manufacturing plants by entrepreneurs from the neighbouring states of Chandigarh, Punjab, Haryana & Delhi. Ancillary industries also developed (though again encouraged by these incentives) to cater to various input requirements of these plants. Baddi developed faster than other areas because of its proximity to Chandigarh & other plain areas and also because of establishment of industrial parks by government.

Pharma Companies in Chandigarh

Pharma companies in Chandigarh

Because Chandigarh is situated in the footprints of Himachal Pradesh and is very close to Pharma Manufacturing industry in Baddi, Chandigarh became hub of PCD Pharma companies. Better quality of life, availability of infrastructure and not-so-expensive real estate attracted new entrepreneurs into establishing Pharma marketing companies in Chandigarh besides attracting the promoters from Baddi and other such areas to establish their marketing offices in Chandigarh. Over the period, it has developed so much that every fourth PCD company in India belongs to Chandigarh. Pharma companies in Chandigarh are very well known and have got good revenue market share among the Pharma industry in India.