GSK invests Rs 200m in new plant

To supply 1.8 billion Panadols:

Charumini DE SILVA

The GlaxoSmithKline Consumer Healthcare - Sri Lanka (GSK) marked a milestone investing Rs 200 million for a local Panadol production plant in Moratuwa yesterday.

GSK Consumer Healthcare Managing Director Sachi Thomas and Health Minister Maithripala Sirisena laying the foundation stone for a new local Panadol production plant of Rs 200 million in Moratuwa yesterday. Picture by Lalith Gamage

GSK Consumer Healthcare Managing Director Sachi Thomas said when Sri Lanka is on the threshold of an economic revival it is important to endorse that the country is ready to take investments. It will encourage attracting many other ventures into the country, he said.

The new facility will be completed by early next year. As with all GSK products, this new plant will meet GSK’s firm global quality control standards. With the commencement of local production of Panadol, the consumer and the country will benefit as a result of a consistently secure source of essential medicines.“Last year the company moved into Panadol liquid manufacturing and it is a great success. We hope the new Panadol solid production plant will facilitate to provide immense security to the pharmaceutical industry in the country,” Thomas said.

Health Minister Maithripala Sirisena said the Government will encourage investments and private sector investors.

“The new venture of GSK is enterprising. This will enable to provide masses anticipating quality and secure drugs at affordable prices, while reducing the load of the Government’s responsibilities in helping the healthcare sector,” he said.

It is essential to have a good combination of private public partnerships (PPP) to develop the country. The country needs around 45 to 47 million panadols per month. However, to cater to this demand the Government has to depend on foreign pharmaceutical manufactures as well. Many of the foreign companies fail to provide quality products and are not capable of delivering the medicine on time. This has created a negative impact on the healthcare industry. Thus, the initiative taken by the GSK is timely. Minister Sirisena said the Government would support GSK in its future endeavours as well as in introducing new products to the market, which provides a source of credible revenue to the country.

GSK Consumer Healthcare Site Director Rajeeve Goonetilleke told Daily News Business that the brand that GSK manufactures in the country from next year is truly a global brand of Sri Lanka. “It shows our ability to produce pharmaceuticals in line with global standards”, he said.

The total capacity of the manufacturing facility is 1.8 billion tablets per year. This capacity is an investment keeping the future requirements too in mind.

In total GSK employs around 300 and this new operation will increase opportunities further.

As a global establishment we focus much on knowledge transfer and capability development of our people since it pays dividends in the long run in terms of maintaining high efficiencies, high quality standards and running operations in a safe and environmentally friendly manner.

“GSK has a globally supply strategy which caters to global markets that focuses on highest standards of quality of products, optimum cost and sustained supply.

Subjective to the above framework, in products where we could be a competitive position within the GSK network we have a good opportunity to set-up local manufacture,” Goonetileke said.

He said over the past five years the company has invested over Rs 200 million in various projects such as upgrading laboratory, manufacturing and infrastructure facilities. The company sells around 70 million Panadol packs per year at single capacity and with the new plant GSK will have the ability to double the capacity.