Schott, the German specialty glass maker is betting big on India, led by rising demand for pharmaceutical packaging material used in ampoules and vials meant for filling injectable drugs and sterile solutions.
The company inaugurated its new glass tank facility in Jambusar, Gujarat, which saw an investment of 21 million euros.
The new facility - the largest in Asia, will cater to domestic demand and exports to overseas markets.
With the new addition at Jambusar, Schott's Indian capacity stands at 17,000 tonnes. The company exports about 20 percent of its production.
But Schott isn’t limiting itself to its existing capacity.
The company is forecasting a rapid growth trend for high quality glass material in the pharma industry, and has thus committed additional investments of 26 million euros for yet another tank facility in 2020.
With the proposed new manufacturing plant, Schott will double its capacity in India to 34,000 tonne, allowing the group to increase its exports share to 40 percent.
Schott looks at India and South-East Asia as a promising market to unlock the next level of growth for its highly specialised FIOLAX tubing material.
"Pharmaceutical industry as a sector is one of the fastest growing in India, and as long as the pharma industry is growing, the demand for pharmaceutical packaging is also growing," said Dr. Patrick Markschlaeger, Executive Vice President, Schott’s Business Unit Tubing.
He said that Schott has emerged as a key supplier of glass tubing, a primary packaging material which enables pharma companies to export drugs to international markets, and that it also has all regulatory certifications in place.
“While domestic market remains our key focus, our India plant also caters to the Asian market, thereby contributing to pharmaceutical industry exports and the Indian government’s vision of becoming a global pharmaceutical hub,” Georg Sparschuh, President, Schott Glass India said.
Schott had committed to invest $1 billion globally in pharmaceutical packaging business by 2025. A significant portion of the investment will flow to India.
In India, through a separate joint venture with its India partner, Schott makes tubular ampoules, vials, glass syringes and cartridges used in pharmaceuticals and cosmetics.
The demand for glass packaging material is shooting up as Indian companies are exporting vaccines, biosimilars, antibiotics, and cancer drugs in injectable and sterile solution formulation.