Healthcare Pharma begins penicillin trial production at Tk600cr Mirsarai EZ plant
The company expects to launch the antibiotic commercially next month, making it the first company to begin pharmaceutical production in the industrial zone.
Highlights
- Company plans to invest $400 million overall
- Project created around 300 jobs so far
- Commercial production expected to begin next month
- First pharmaceutical factory to begin production in NSEZ
- Company has been allocated 40 acres
- Company suffers from unreliable gas, water, electricity supply
Healthcare Pharmaceuticals has started trial production at its penicillin manufacturing plant in the National Special Economic Zone (NSEZ), built with an investment of nearly Tk600 crore.
The company expects to launch the antibiotic commercially next month, making it the first company to begin pharmaceutical production in the industrial zone.
Healthcare Pharmaceuticals Limited is one of Bangladesh's leading local drug manufacturers. According to the Bangladesh Economic Zones Authority (Beza), the company has been allocated 40 acres in the Mirsarai-Feni Economic Zone, including an additional 10 acres allotted in 2022. Its proposed total investment stands at $400 million.
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Healthcare Pharmaceuticals CEO Md Halimuzzaman told The Business Standard that the factory has obtained all required licences and has been conducting trial production since the last week of June.
"We have completed the trial production. Once we receive government approval for the product price, we will be able to market it commercially. We expect to begin commercial production next month," he said.
Halimuzzaman said the company has invested about Tk600 crore in the project so far, creating employment for around 300 people.
He said the facility is a dedicated penicillin manufacturing plant. Because penicillin production requires a completely separate manufacturing system, no other types of medicines can be produced at the same facility.
"Very few companies in Bangladesh are currently interested in producing penicillin because next-generation cephalosporin antibiotics dominate the domestic market. Globally, however, penicillin remains the most widely used antibiotic. Considering that potential, we have established an international-standard penicillin facility," he said.
He added that the factory will eventually be able to manufacture penicillin not only for Healthcare Pharmaceuticals but also for other local pharmaceutical companies, while creating opportunities for exports.
Although the company had planned to produce active pharmaceutical ingredients (APIs) alongside finished pharmaceutical products at the site, API production has not yet begun there.
Halimuzzaman said Healthcare Pharmaceuticals was the first company to begin production at the API Park in Munshiganj and is now in the commercial production stage there.
Challenges remain
Industrial entrepreneurs say many of the infrastructure facilities promised for the National Special Economic Zone have yet to be completed. They believe businesses will benefit significantly once the government's plans are fully implemented.
Halimuzzaman said the biggest operational challenge is the lack of uninterrupted gas, water and electricity supplies.
"Gas, water and electricity are our three main challenges. Another major problem is the absence of housing facilities for officers and employees. Rental accommodation is almost impossible to find in the area, making it difficult both to retain skilled workers and recruit new ones," he said.
He noted that the original plan envisioned a fully integrated residential community within the economic zone, including housing, schools, colleges and hospitals for employees, but little visible progress has been made.
Because of the housing shortage, the company has had to accommodate many employees in Feni and Chattogram, increasing operating costs and wasting time through daily commuting.
"The biggest issue is recruiting skilled workers. Many people lose interest when they learn they will have to commute from Chattogram every day," he said.
Calling on the government to fulfil its commitments, Halimuzzaman urged the authorities to accelerate infrastructure development.
"The promised infrastructure facilities should be implemented as quickly as possible. The government can build housing, or allocate land so we can construct it ourselves. It must also ensure uninterrupted gas and electricity supplies. Most importantly, a permanent water solution is needed. The long-discussed plan to bring water from the Feni River for treatment should be implemented without delay."
"If the government fails to deliver the promised facilities, investors like us will become frustrated, and it will be difficult for us to move forward with our projects here."
