Building BusinessServices

Section 21

Baddi–Barotiwala–Nalagarh

Solan, Himachal Pradesh · Manufacturing

Pharmaceutical formulations

sourced figures
2
main products
5
businesses to start
7

The story

Baddi was a cluster of villages until the 2003 central industrial package for Himachal offered tax holidays to new factories. Pharma companies moved formulation plants here in large numbers, close to Chandigarh and the plains, and the Baddi–Barotiwala–Nalagarh belt became one of India's largest pharma clusters. Contract manufacturers make medicines for many brand owners. A bulk drug park and a medical device park are being built to cut dependence on imported raw materials.

In numbers

  1. The Himachal Drug Manufacturers Association represents 650 out of 750 pharma companies in the state, and the total turnover of the industry in the Baddi–Barotiwala–Nalagarh belt is around ₹40,000 crore.

    The Tribune — HP pharma cluster to cash in on falling Chinese imports · 2018
  2. The Bulk Drug Park project costs ₹1,923 crore, with a central grant of ₹1,118 crore and a state contribution of ₹804.54 crore.

    The Tribune — Looking back 2022: mega projects okayed · 2022

Ways in for a newcomer

  • Third-party (contract) manufacturing for marketing companies
  • Pharma packaging — blisters, cartons, labels, bottles
  • Testing labs and regulatory documentation services
  • Logistics and cold-chain from Baddi to north Indian distributors

Problems the cluster faces

  • Dependence on Chinese APIs
  • Quality and drug-regulator scrutiny
  • Poor roads and traffic in the BBN belt
  • End of tax holidays

Businesses to start here

Medicinal Tablets Manufacturing Unit →Ayurvedic Tablet Making →Ayurvedic Capsule Making →Laminated Flexible Packaging →Corrugated Box Unit →Magnesium Stearate →Medical Store (Retail Pharmacy) →

Sources (2)
  1. The Tribune — HP pharma cluster to cash in on falling Chinese imports
  2. The Tribune — Looking back 2022