Page 143 - CW E-Magazine (22-7-2025)

Top Stories Pharmaceuticals

SEEKING SUPPORT LOSS MAKING BUSINESS

ISMA urges government to maintain fuel ethanol Wockhardt to exit its US generics business
structured exit from a legacy segment tegic review, the company has con-
Mumbai-based Wockhardt is realig-
import restrictions ning its business in the US by focusing and unlocks management bandwidth cluded that continuing in this segment
The Indian Sugar and Bio-Energy Ballani, in a letter to Commerce Minister Currently, the government has on its innovation-driven business, and and capital for high-impact areas”. would detract from its broader innova-
Manufacturers Association (ISMA) Piyush Goyal, demanded that the placed ethanol imports under the exiting its residual generics operation. tion agenda,” it said. The company re-
has urged the government to maintain government maintain current restric- ‘restricted category’. It has fi led for voluntary liquidation The company’s future operation in mains committed to its pharmaceutical
restrictions on fuel ethanol imports, tions on fuel ethanol imports for blend- for its US step-down subsidiaries. the US will be built on its antibiotic operations in India, the UK, Ireland,
warning that allowing such imports ing purposes and continue supporting India has been aggressively pro- drug discovery where Wockhardt has a and other geographies where its
could undermine national energy secu- indigenous ethanol production. He moting its domestic ethanol industry “Wockhardt has fi led for voluntary strong pipeline; and its biologicals businesses continue to deliver strong
rity and self-reliance in green fuels. also requested the government reas- to reduce reliance on crude oil imports, liquidation under Chapter 7 of the US portfolio in insulin, the company said. performance, it said.
sure stakeholders on “policy stability,” aiming for a 20% ethanol blending Bankruptcy Code for its US step-down
The industry body expressed con- thereby encouraging continued invest- mandate (E20) ahead of the original subsidiaries, Morton Grove Pharma- Over the past several years, Wock- Over two years ago, the company
cern as the United States, backed by its ment and farmer-centric development. 2030 target. ceuticals Inc. and Wockhardt USA hardt’s US generics business has been had announced that it was closing its
farm lobby groups, has been actively LLC, both incorporated in Delaware, incurring losses, it said, adding that in manufacturing facility in Illinois and
lobbying India to lift these restrictions Mr. Ballani highlighted that open- India’s ethanol production capacity which are wholly-owned subsidiaries fi nancial year 2025 alone, the generics would continue its business in the
and allow ethanol imports for fuel use ing up fuel ethanol imports would pose has grown by over 140% since of Wockhardt Bio AG,” the company business incurred a loss of nearly $8-mn. US through contract manufacturing
as part of broader trade negotiations, several challenges, including risks 2018, with investments exceeding said, adding that the decision effective alliances there for its products sold in
hoping to access India’s large ethanol of disrupting farmer payment cycles, Rs. 40,000-crore. Ethanol blending has July 11 paved the way for a “clean and ‘“Following a comprehensive stra- North America.
fuel market. especially since ethanol prices are reached 18.86%, and “we are fi rmly INVESTMENT PLANS
closely tied to the fair and remunerative on track to meet the 20 per cent blend-
Negotiations are ongoing, with price of sugarcane. It could also dilute ing target in this year itself,” Ballani Anthem Biosciences expanding custom synthesis and
Indian commerce offi cials engaging signifi cant gains made in domestic said. He added that today, the Ethanol
US counterparts, but no policy changes capacity building, investment, and job Blending Programme is not just an fermentation capacities
allowing fuel ethanol imports have creation, and may lead to under-utilisa- energy programme, but a model for
been implemented as of this month. tion of Indian ethanol plants, many of inclusive rural growth, empowering over Bengaluru-based Anthem Bio- capacity at Unit II by 130-kl and adding Anthem has also acquired land par-
which are still in early stages of capital 55-million sugarcane farmers and their sciences Ltd. contract research, deve- 25-kl of custom synthesis and 40-kl of cels which it intends to use for future
ISMA Director General Deepak recovery. families. lopment, and manufacturing organisa- fermentation capacity at a new Unit III. capacity expansion, including Unit IV
tion (CRDMO), Anthem Biosciences Both projects are expected to be opera- (where phase-wise construction work
FREAK ACCIDENT Ltd., has earmarked Rs. 154-crore to- tional by the fi rst half of FY26. has commenced), and the proposed
wards the expansion of custom synthesis Unit V facility. It expects to fund future
BPCL assessing impact of fi re at Kochi refi nery and fermentation capacities at its facili- Post-expansion, the aggregate an- capital expenditures primarily using cash
ties in Karnataka. This follows a capital nual custom synthesis capacity and generated from its operations and/or debt
Bharat Petroleum Corporation the BPCL Kochi Refi nery campus. An also operates a speciality propylene expenditure of Rs. 314-crore in FY25 fermentation capacity are expected to financing, including bank loans. The
Ltd. (BPCL) is currently assessing the electric arc – thae high-temperature derivatives petrochemical project at the for acquiring property, plant, and labo- increase to 425-kl and 182-kl, respec- company had recently announced its
impact of an 8 July fi re incident at luminous discharge created from rup- complex which has the capacity to pro- ratory equipment, with a capital work- tively. Rs. 3,395-crore initial public offering (IPO).
its Kochi refi nery and petrochemical tures in the wire which was created duce 160-ktpa of acrylic acid; 212-ktpa in-progress (CWIP) of approximately
complex in Kerala. on the tripping of the feeders – prob- oxo alcohols (n-butanol, isobutanol and Rs. 300-crore as of FY25. ICMR updates on progress in development of
ably triggered the fi re. As an electric 2-ethylhexanol); and 190-ktpa of acry-
Twenty-three people were hospi- arc rarely gets converted into fi re, the lates (butyl acrylate and 2-ethylhexyl Founded in 2006, the company has India’s fi rst dengue vaccine
talised – seven BPCL workers and 16 probability of the presence of some acrylate). two operational manufacturing facili- Enrolment of about 10,500 partic- among others have received either the
residents of the surrounding area – after kind of combustible gas in the con- ties in India, Unit I (Bommassandra) ipants in the phase III clinical trial of vaccine or a placebo as part of the trial.
inhaling smoke following an explosion cealed underground chamber is one of The Kerala State Government has and Unit II (Harohalli), both in Karna- the indigenous one-shot dengue vac- The trial is co-led by ICMR-National
and fi re near BPCL’s central warehous- the causes being looked into. announced a special committee to taka, with an aggregate annual custom cine, DengiAll, developed by Panacea Institute of Translational Virology and
ing unit on July 8. investigate the fi re, which will submit synthesis capacity of 270-kl (kilolitre) Biotec, is likely to be completed by AIDS research in Pune, National In-
BPCL operates a 15.5-mtpa refi nery its report within three days. A separate and fermentation capacity of 142-kl, as October across 20 centres in India, stitute of Epidemiology (NIE), Chennai
The fi re was reportedly caused at its Kochi complex and produces lique- committee has been formed to review of March 31, 2025. according to Indian Council of Medical and National Institute of Virology,
by a power fl uctuation in a 200-kilo- fi ed petroleum gas, naphtha, benzene, BPCL’s disaster management action Research (ICMR). So far, 8,000 partic- Pune. Currently, there is no antiviral
volt (kV) underground cable, which toluene, hexane, propylene, sulphur, plan and to recommend any changes The company’s expansion plans ipants in various centres at Pune, Chennai, treatment or licensed vaccine against
passes through a concealed trench on petcoke and hydrogen. The company within a week. include increasing custom synthesis Kolkata, Delhi and Bhubaneswar dengue in India.

142 Chemical Weekly July 22, 2025 Chemical Weekly July 22, 2025 143

Contents Index to Advertisers Index to Products Advertised