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Kakinada becomes entry point to Penicillin-G

TL;DR

The Production of Penicillin G, which was stopped around one half-decade ago was started again at Kakinada with PLSI, coming as handy.

Introductory memo

After almost three decades of long lull, the manufacturing of Penicillin G was commenced in India, that too in a small village Tondangi near Kakinada of Andhra Pradesh. The initiative of Production Linked Incentive Scheme (PLIS) by Prime Minister Narendra Modi virtually inaugurated the facility on October 29, 2024. The Government of India was instrumental in reviving the production of penicillin. Lyfius Pharma, a subsidiary of pharma giant Aurobindo, has established a production unit which will reduce the dependency on China.

Analysis/ analytical view

After focusing on Aatmanirbhar, Bharat is making all out efforts to tell new success stories every day. This is made possible not only by the commitment of the Government of India, but also by players of respective fields who are showing and the same commitment.

What is Penicillin- G

Penicillin G, also known as benzylpenicillin, is a natural narrow spectrum betalactam antibiotic. It works by stopping bacteria from forming their protective cell walls. This medicine can be used for respiratory tract infections, syphilis meningitis, severe systemic infections and other infections.

Penicillin G is an important starting material for manufacturing other penicillin-group medicines. Its derivatives and intermediates are used in the production chain for antibiotics such as amoxicillin and ampicillin. It is produced through industrial fermentation, in which suitable microorganisms are cultivated under controlled conditions. The resulting material undergoes downstream processing and purification to obtain the required pharmaceutical ingredient.

This process requires substantial investment in fermentation technology, utilities, specialised equipment, quality control and environmental management. Production at scale is more complex than importing an ingredient and converting it into a finished medicine.

Penicillin G is an active pharmaceutical ingredient (API) used in several antibiotics. An API is the main ingredient of a drug responsible for bringing desired results. The production of the medicine was phased out between 1995 and 2007 due to various reasons including subsidized cheaper Chinese products flooding the market and Indian companies unable to face the competition. According to a report, Hindustan Antibiotics stopped the production, followed by JK and Torrent and Alembic one after other.

Under PLIS scheme the production unit was built at Kakinada ZEZ. Instead of importing the required material, India is now producing the Penicillin G, which itself is a great achievement.

PLIS scheme

With an intention to boost the industries, the Union Government has commenced The Production Linked Incentive (PLI) Scheme for Bulk Drugs is strengthening India’s domestic capabilities in manufacturing critical Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs), reducing import dependence and enhancing resilience across the pharmaceutical supply chain. The Union Government has pushed about Rs. 5,000 crore into the relevant fields.

Five Greenfield projects that have commissioned manufacturing facilities under the Scheme demonstrate the growing scale and diversity of domestic production, covering critical ingredients for antibiotics, cardiovascular medicines and Paracetamol.

Lyfius Pharma Pvt. Ltd., a subsidiary of Aurobindo Pharma Limited, has established a large-scale Penicillin G manufacturing facility at Kakinada SEZ in Andhra Pradesh. The project with an investment of Rs. 2,270.05 crore, has installed capacity of 15,000 MT per annum. The facility has generated 2,353 direct jobs and recorded cumulative production of Rs. 1,191 crore

In another such initiative, Andhra Organics Limited (AOL), a wholly owned subsidiary of Virchow Laboratories Limited, has commissioned manufacturing facilities for Sulfadiazine, Telmisartan and Olmesartan at Pydi-bhimavaram in Srikakulam district of Andhra Pradesh. The projects involve a combined investment of Rs. 151.47 crore and have generated and offered employment for as many as 221 persons. The company has developed the manufacturing technology in-house and has established greenfield production facilities.

This explains the importance of PLIS scheme, industry preparedness to take challenges and overcome them, and writing a new page of success for the nation in the history.

News at a glance

Proud Kakinada is at the heart of India’s return to making Penicillin, says Andhra HR D Minister Nara Lokesh

https://www.thehindu.com/news/national/andhra-pradesh/proud-kakinada-is-at-the-heart-of-indias-return-to-making-penicillin-says-andhra-hrd-minister-nara-lokesh/article71615985.ece

PLI scheme for Bulk Drugs for Resilient Pharmaceutical Supply Chaian

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2314891&reg=48&lang=2

Hon’ble Prime Minister Shri Narendra Modi Inaugurates Lyfius Pharma’s Flagship Penicillin-G Facility at Kakinada, Andhra Pradesh – City Today News

PM Modi inaugurates Lyfius Pharma’s flagship Penicillin-G facility – Express Pharma

Lyfius Pharma Commissions ₹2,500 Crore Penicillin-G Facility in Kakinada | News On Project

Penicillin shot: Will Aurobindo Pharma’s audacious bet rejuvenate antibiotic production in India? | Company Business News

Kalpakkam reactor’s milestone a proud moment for India, says A.P. Chief Minister Chandrababu Naidu – The Hindu

India’s pharmaceutical sector records transformative growth over 12 years, strengthening affordable healthcare and self | DD News

By The Numbers

Installed annual capacity

15,000 MT

Penicillin G ·

Direct jobs reported

2,353

Cumulative production value

Rs. 1,191 crore

Domestic value addition

Over 90%

Academic Insights

https://pmc.ncbi.nlm.nih.gov/articles/PMC11339718/

https://my.clevelandclinic.org/health/treatments/penicillin

Social Media Pulse:

Lokesh Nara on X: “Proud that Kakinada is at the heart of India’s return to making Penicillin G. Thank you, Hon’ble PM @narendramodi ji, for highlighting this milestone. Lyfius Pharma, part of Aurobindo Pharma, runs a 15,000 MT plant at Kakinada under the PLI scheme, helping cut India’s dependence… / X

https://x.com/YSRCParty/status/2113588046100922568?s=20

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