Gujarat Themis Biosyn Ltd – Bulk Drugs growth momentum

Personally, I was little disappointed/perplexed with GTBLs decision to NOT apply for PLI benefit though being one of the leading player for one of the eligible products (Rifampicin) under fermentation category. Guess, the huge capacity requirement of 100 MT/year (against current capacity of ~10 MT/Year) being one of the key eligibility prerequisite was deterrent for them . More so, since they don’t have forward integration into formulation and have to do B2B sales. That is where forward integrated player like Macleods Pharma was able to commit a 200 MT Rifampicin capacity and avail PLI benefit.

Some recent positive development, which can make good for lost PLI benefit, (to some extent). Seems that GTBL has applied and has been selected to avail GSBTM (Gujarat State Biotechnology Mission) benefits

15 companies sign MoUs worth Rs 2000 crore, in a day, for investments in biotech sector – Times of India (indiatimes.com)

Policy level benefits appears to be very attractive (Link):

1. Capital Assistance – Overall incentives under Capital Assistance shall be 25% of capital investment with a ceiling of INR 40 Crores
2. Operational Assistance – Eligible applicants shall be entitled to avail overall assistance at 15% of Operational Expenditure with a ceiling of INR 5 Crores per annum.
3. Employment Generation Incentive – e benefit for claim upto 50% of CTC with a ceiling
   not exceeding INR 50,000 per male employee and not exceeding INR 60,000 per
   female employee.
4. EPF Assistance – 100%/75% EPF contribution for female/Male employee respectively.
5. Interest Subsidy on Term Loan- interest subsidy on Term Loan at the rate of 7% for borrowings up to INR 100 Crores within a ceiling of INR 7 Crores per annum
6. Electricity Duty – Electricity Duty on power purchased from State Electricity distribution companies or power distribution licensees shall be on 100% reimbursement basis for a period of five years

This Policy shall remain in force till 31st March, 2027. Also, it has worked in favour of GTBL since Biotechnology Mission incentives are flexible in terms of product category and capacity, as compared to PLI scheme.

As an aside, spent some time on Gujarat State Biotechnology Mission website (link). Mighty impressed by the approach and effort by state Govt to attract and promote Biotech in the state.

Thanks,
Tarun
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