30 November , 2021 Fdiindia
ACG To Set Up Asia’s Largest Capsule Plant In Maharashtra
In accordance with the Union government’s drive to manufacture plant-based cellulose capsules instead of animal origin gelatin, ACG, one of the largest supplier of capsules in the world, has decided to build Asia’s largest greenfield vegetarian capsule manufacturing unit in Aurangabad, Maharashtra.
The new factory in the Marathwada region will see an investment of Rs. 600 crore and will help create approximately 1000 jobs, direct and indirect, by 2023. The facility will produce 40 billion capsules per year, catering to the Indian and international pharma and nutraceutical companies.
As per India’s current FDI policy, 100% FDI is allowed under automatic route in greenfield pharmaceutical projects and 74% in brownfield projects.
Greenfield projects are those that require work from scratch and brownfield projects are those that have been previously worked upon.
The company has signed a Memorandum of Understanding (MoU) with the Maharashtra government and has been allotted land for the setup.
Karan Singh, managing director, ACG, has said that the company plans to benefit from the Centre’s production-linked incentive scheme (PLI). He also added that the firm has developed technology to manufacture cellulose capsules.
“The intention is that if there is a vegetarian alternative available, why not migrate towards it?” he said. He also added that the company would pay more attention to manufacturing capsules for use in high-quality nutritional supplements, as part of its commitment to the government.
The proposed plant in the backward Marathwada region has been awarded the status of a ‘mega project’ by the state government. The company also plans to build a research and development center beside the manufacturing unit.
As per ACG’s announcement, the upcoming plant will utilize sustainable design principles from the globally recognized Leadership in Energy and Environmental Design (LEED) and be majorly powered by renewable energy.
As many as 55 organizations have qualified for the pharmaceutical sector’s PLI scheme. Some of them are industry leaders such as Sun Pharmaceuticals, Dr. Reddy’s Laboratories, Cipla, Glenmark Pharmaceuticals, Biocon and Lupin, among others.
The beneficiaries also include 20 micro, small and medium enterprises (MSMEs). The Small Industries Development Bank of India (SIDBI) will oversee the project management of the PLI scheme.
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