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INDIA
BUSINESS WORLD -
FEBRUARY 2006
THE MONTH THAT WAS SERUM OPENS INDIA'S FIRST BIOTECH SEZ
SERUM Institute of India (SIIL), the Rs 600-crore vaccine manufacturer, unveiled the country's first biotech SEZ at its Hadapsar location today. The Rs 1,200-crore project, spread over 55 acres, will be ready by 2010. Called the Serum Biopharma Park, it will house players other than Serum's own production facilities. Currently, SIIL is the sole company located there although Dr Cyrus Poonawalla, chairman, Poona Walla group, said interest is being shown by several players.
Units located in the SEZ will benefit from total exemption from all indirect taxes in perpetuity. Direct taxes will be waived for a 15-year period, with a 100% exemption from income tax (I-T) for the first five years, a 50% exemption for the next five and a further 50% exemption for the last five years.
Dr Poonawalla explained that SIIL has two roles to play — as developer of the BioPharma Park and as a company located there. A Special Purpose Vehilce (SPV) has been created for the purposes of investment in the Park which will develop the infrastructure there. This could also include a captive power plant. Initially spread over 55 acres, the Park could expand to 250 acres, Adar Poonawalla, managing director, SIIL, said. SIIL expects that half the total area will remain for the company's captive use while the balance will attract other players. The Poonawalla group, with a pre-eminent position in the breeding and racing of horses, holds 150 acres in the Hadapsar location and another 400 acres further along the Pune-Solapur highway.
At the Bio Pharma Park, SIIL will manufacture oncology products and new vaccines including for meningitis, pneumonia, whooping cough for the US and UK markets, vaccines for flu, etc. Dr Poonawalla added that the fiscal benefits because of the SEZ status would benefit Indian users.
“We will pass on the price advantage of the SEZ to Indian buyers but not to overseas buyers. In those markets, we will price slightly below the competitors,” he said. He added that the product range of the new SEZ and the existing EoU would be different, with a marginal overlap. . |
