Is India shining? Going by the interest shown by multinationals, especially IT and pharmaceutical firms, in investing and expanding into India, it would seem that there is a shine to India.

Sandoz India Pvt Ltd, the Indian subsidiary of the global generic pharmaceuticals leader, Sandoz, which develops, manufactures and markets these medicines as well as pharmaceutical and biotechnological active ingredients, inaugurated its third plant in India at Kalwe, Navi Mumbai in the third week of May 2004. The Indian company, now Sandoz Pvt Ltd, has become a wholly-owned subsidiary of Novartis AG. In 2003, SPL posted a turnover of Rs2,950 million.

Decades of experience and profound know-how make Sandoz a renowned partner in the franchises pharmaceuticals, biopharmaceuticals and industrial products. Altogether, Sandoz employs around 13,000 people world wide and posted sales of $2.9 billion in 2003.

Sandoz GmbH CEO Christian Seiwald, who was in India recently, has headed Novartis' generics business unit since June 2001. It was in May 2003, when various companies merged to one global brand, that he was appointed CEO of Sandoz. Prior to that, in October 1996, Christian Seiwald was responsible for merging the pharmaceutical divisions of Ciba-Geigy GmbH and Sandoz GmbH. During that time he served as Head of Novartis Pharma GmbH until June 2001.

From 1994 to 1996, Christian Seiwald held the position of Regional Director of Sandoz Pharmaceuticals Singapore Pte Ltd, responsible for affiliates in 14 countries of the Asia / Pacific region, with 3,000 employees. From 1991 to early 1994, he managed a joint venture (PT Sandoz Biochemie Farma Indonesia) in Jakarta. Christian Seiwald was born in St Johann (Tyrol) and studied business administration at the University of Innsbruck. After completing his degree, he attended management courses at Harvard (Boston) and INSEAD (Fontainebleau). Excerpts from an interview:

What is the capacity of the new factory?
Built at a cost of $13 million, the facility has a capacity to produce 1billion tablets and capsules annually and is designed to conform to US FDA standards. The infrastructure at the site is adequate for significant future expansion.

What will be the focus of the new unit?
The new unit will be a vital link in Sandoz' global manufacturing network and will primarily focus on manufacturing for highly regulated markets like the US and EU. Tablets (coated and uncoated, pellets and capsules) along with products developed at the global development centre (Sandoz pharmaceutical development centre, Kolshet, on the outskirts of Mumbai) will also be produced at Kalwe.

What makes this plant a major step in Sandoz growth plan in India?
With the opening of the Kalwe plant, Sandoz has taken a major step towards trengthening the world wide production network of our company. This is a vivid example how we put our core value of global presence into reality. With our network on all continents, we are in the position to supply our customers with high-quality products at the right place at the right time.

Which are your other plants in India, and what are the products that are manufactured there?
The other two units are located in Kolshet, Thane and Turbhe, Navi Mumbai. The Kolshet unit is the oldest in the Sandoz family. Kolshet is a development centre for finished dosage forms (FDFs) and active pharmaceutical ingredients (APIs). Kolshet also has a large-scale pilot plant for APIs. While formulation development currently is the backbone of the development centre, the facility also develops processes for bulk drugs
and intermediates.

The Turbhe site is dedicated to the manufacture of oral cephalosporins for all regulated and non-regulated markets. An export unit, it has received approval from the US FDA for API manufacturing and EU approval for formulation manufacturing. Turbhe was built in 2001 as a strategic link for the Sandoz Group which is a pioneer in cephalosporin technology.

Is there a cost-advantage in manufacturing from India?
There is, of course, a considerable cost-advantage, as compared to Europe and the US. For any player in the generics industry, it is a must to be in India.

How will the new plant help support supplies to the US?
India will be a major contributor to achieving the ambitious goals we have set out within Sandoz. With the company expecting our sales in the US to overtake the EU in the near future the new plant in India will largely support supplies to the US.

Do you plan to acquire any companies here?
We are planning to grow organically, and we do not have any plans to acquire in the local market. But we will look at opportunities with a business eye. The high price-to-earnings ratios of Indian pharmaceutical companies are a deterrent.

Finally, what do think India can offer you?
India has achieved a lot not only as a most attractive production place but also provides great product development abilities.