On July 31, during his state visit to India, Prime Minister Pham Minh Chinh met with two major Indian pharmaceutical groups, SMS Pharmaceuticals and Sri Avantika. He discussed investment opportunities and collaboration in the pharmaceutical sector with Mr. P.Ramesh Babu, Chairman and Managing Director of SMS Pharmaceuticals, and Mr. Narendra Reddy, Managing Director of Sri Avantika.
Mr. P. Ramesh Babu shared the group’s interest in investing in Vietnam’s pharmaceutical industry. They requested 500 hectares of land in Nghi Son, Thanh Hoa, to establish a pharmaceutical park. The group plans to attract secondary investors and commence commercial production within 6-8 months. SMS has already had success with a cancer treatment data center in India and aims to expand its cancer treatment offerings.
Mr. Dharmesh Shah, Founder and Chairman of BDR Pharmaceuticals, expressed his group’s desire to contribute to Vietnam’s fight against cancer. BDR aims to produce cancer treatments with fewer side effects and intends to shift from chemical to biological cancer treatments. They offered to transfer technology for cancer drug production and establish a cancer treatment data center in Vietnam.
Prime Minister Chinh welcomed BDR’s investment plans, aligning with Vietnam’s strategy to combat cancer. With a population of 100 million and a rising prevalence of cancer, Vietnam offers a significant market for cancer treatments. The Prime Minister suggested that BDR establish a distribution system alongside its planned drug production facility.
Prime Minister Chinh meets with Mr. Dharmesh Shah, Founder and Chairman of BDR Pharmaceuticals
In February 2022, SMS Pharmaceuticals and Sri Avantika signed an agreement with Dai An Urban-Industrial Zone Development JSC (Hai Duong, Vietnam) to invest in the Vietnam-India International Pharmaceutical Park in Hai Duong. This $10-20 billion project spans 960 hectares and is one of the largest pharmaceutical projects in Vietnam. The Indian companies have since signed an MoU with Dai An to develop the project’s infrastructure.
Mr. Ramesh Babu Potluri, Chairman of SMS Pharmaceticals, affirmed that the park will attract renowned global pharmaceutical companies for research and production. The products manufactured in the park will be exported to demanding markets such as the US, Japan, and Europe.
SMS Pharmaceuticals, established in 1990, is one of India’s largest pharmaceutical manufacturers. It employs 1,000 people across four production facilities and two research centers. Sri Avantika, founded in 1992, operates in diverse sectors, including mining, pharmaceuticals, infrastructure, and trade.
BDR Pharmaceuticals, established in 2002, is India’s leading cancer treatment producer, with an 80% market share domestically. They have a fully integrated supply chain, from raw material production to finished products. In 2023, BDR had 3,200 employees, $250 million in revenue, and $90 million in profits. BDR established a representative office in Vietnam in 2022 and currently supplies raw materials to Vietnamese cancer drug manufacturers.
India boasts a robust pharmaceutical industry, ranking 3rd globally in volume and 13th in value. It supplies 60% of the world’s vaccines and is the top producer of generic drugs, accounting for 20% of global supply by volume. During the COVID-19 pandemic, India supplied vaccines to 110 countries. India’s pharmaceutical exports reached $27.9 billion in the 2023-24 fiscal year.
