Teva earmarks $1bn for India plans

The world's generics titan, Teva, has reportedly earmarked over $1bn to fuel an ambitious plan to broaden its presence in India.

Over the next two years the firm is intending to use $250m-$300m to build new generic ingredients manufacturing facilities in the country.

The first of these planned constructions is imminent, with company preparing to build a large active pharmaceutical ingredient (API) manufacturing facility, on over 100 acres of land near Gwalior, Madhya Pradesh.

Production capacity will be in line with Teva's large Indian competitors.

Meanwhile, the remainder of the money will be used by Teva to fund the hopeful takeover of some Indian pharma businesses.

The Israeli company's plans were revealed by Indian newspaper Business Standard , who reported that Teva has been eyeing major acquisition opportunities in India for the past three years, so far to no avail.

Teva already has a presence in India through its Indian subsidiary, Teva India, in addition to a two year old R&D centre in New Delhi, however, a company spokesperson reportedly told Business Standard that: "Teva considers India an interesting geographical region and is looking to broaden its activities in the country".

Indeed, in recent times India has turned a corner and a plethora of pharma firms who once shied away are now flocking to the country to either outsource various business functions or set up infrastructure and take advantage of India's burgeoning, low cost pharmaceutical industry and large scientific talent pool.

Those in the business of generics market find India's low cost base a particular beacon, as margins in the industry become tighter and tighter and rock bottom production costs are key to remaining competitive.