Glaxo SmithKline opens Rs. 217 m new plant

By Cheranka Mendis

Glaxo SmithKline yesterday opened its latest state-of-the-art pharmaceutical tablet manufacturing facility in Moratuwa, built at an investment of Rs. 217 million.

Confirming its commitment towards strengthening its footprint in Sri Lanka, the facility is part of a Rs. 1.4 billion investment that the company will put forward this year in the area of reinforcing working capital requirement.

Identified as one of the single largest investments in the country’s pharmaceutical industry, the plant has been designed in accordance with GSK’s stringent global quality standards.

It will enable the manufacture of Panadol tablets locally. They were previously imported from the UK.

The plant, which was declared open by Economic Development Minister Basil Rajapaksa, has the capacity to produce 2.4 billion tablets at full capacity even though it will be operated at 50% capacity for the manufacture of Panadol tablets. The remaining capacity will be utilised to manufacture other pharmaceutical tablet formulations for the country. The facility houses a fully-equipped laboratory with all testing facilities. It stands on a 50,000 square foot area.

The company is keen to invest more and introduce new products to the market in the area of pharmaceuticals, Managing Director of GSK Consumer Health Care Sri Lanka T.S. Dayanand said. “The success of the company is entwined with the country’s economic growth. We are here to stay and to invest. Ever since the setting up of our first manufacturing plant in 1958, we have been committed towards supporting the development of the country.”

DSK Site Director Rajeeve Goonetilleke told the Daily FT that another new manufacturing plant was being built within the property to further the localisation program of the company. Expected to be launched in October, the new plant will follow the same quality standards adhered to in all GSK plants in Australia and UK.

Directly aligning with the goals of the Government according to the ‘Mahinda Chinthana’ in the pharmaceutical manufacturing process, GSK’s view is to support the localisation initiative, which would save foreign exchange and guarantee speed to the market.

“Localisation is important across all sectors. With GSK’s commitment with the new plant, we believe we would be able to create a positive impact in the minds of other investors and create a level of confidence among new investors,” Goonetilleke said.

He noted that even though the immediate set-up is geared at supplying the local market, if the opportunity and capacity need arises in the network, exporting the tablets would also be a possibility. “However, right now we want to solely concentrate on the Sri Lankan market,” he added.

Minister of Health Maithripala Sirisena, who attended the foundation stone laying ceremony of the newly-opened plant a year ago, commended GSK’s localisation plans and noted that the Government was ready to support all local and global investors who would engage in similar business.

“In Budget 2012, President Rajapaksa confirmed that the Government would support similar localisation initiatives with tax concessions and even loan facilities from the Treasury to local investors.”

In its portfolio of investment, GSK has invested Rs. 500 million in the last five years, which has resulted in foreign exchange savings on localisation of products estimated at a cost of US$ 32 million per annum.