India | December 2021

On a Booster Dose:
Life Sciences Real Estate
SP OT LI GH T
Savills Research

Expanding Investment Horizons

 On a Booster Dose: Life Sciences Real Estate

Contents Prologue
1. Prologue ........................................................................03 The global life sciences industry has been
on the rise, growing more rapidly than ever
2. Encapsulating the Findings......................................04 over the past decade. Its pace increased
significantly during the pandemic
3. Introduction...................................................................05 throughout 2020 and 2021 with demand
surging and access to capital continuing
4. India Life Sciences Sector: to expand.
Current State & Growth..............................................06 As the global community races to develop
new vaccines, ramp up production and
5. Life Sciences Enablers................................................07 distribution to combat coronavirus, India
is also strengthening its position in the life
Structural factors............................................................... 08 sciences industry. Currently, India is hailed
as the largest provider of generics globally
Rich demographic dividend - and is referred to as the pharmacy of the
world1.
India has a large skilled
While India’s growth continues in the
workforce............................................................................... 09
supply of generics, the country is swiftly
Cost efficiencies................................................................. 10 moving up the value chain and focusing
on innovation and R&D. Favourable
Growing number of government policies, large skilled
workforce, and cost efficiencies, among
institutional participants.............................................. 11 many other factors, are attracting venture
capital funding into the life sciences
6. Life Sciences Related Real segment. India is gaining momentum to
Estate Growth Potential.............................................12 develop a robust life sciences R&D hub that
will likely present a lucrative opportunity
7. Life Sciences Real Estate Specifications...............14 for private equity investors. As a testimony,
in July 2021, India witnessed its maiden
8. Life Sciences R&D Real Estate: investment by a global pension fund in life
Future Scenarios and Projection sciences R&D asset. A Canadian Pension
Fund along with Singapore-based wealth &
Model...............................................................................15 asset management firm jointly invested
USD 100 million (INR 7.5 billion) in life
9. Opportunity for Investors..........................................16 sciences R&D facilities in Genome Valley,
Hyderabad. This investment may prove to
10. Challenges.....................................................................18 be a stepping stone for more equity
investments into the segment.
11. Conclusion ....................................................................19

12. Annexure I .....................................................................20

13. Annexure II ....................................................................20

14. Annexure III ..................................................................21

Note: USD1 = INR75

1. Invest India, Government of India

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 On a Booster Dose: Life Sciences Real Estate
Encapsulating the Findings
The life sciences sector in India is set to grow
owing to several favourable factors. These consist
of structural changes including the current
geopolitical environment and regulatory regime,
India’s rich demographic dividend that translates
to large skilled workforce, cost efficiencies in
terms of lower manpower and rental costs, and
the growing attractiveness for venture capital
funding companies. This, in turn, is expected to
positively impact the growth of related real estate
in India.
Life Sciences in India:
Real Estate and Private Equity Investment Potential,
Cumulative 2021 to 2030
72 14
Conservative Case
152 27
Optimistic Case
Source Savills India Research
savills.in
On a Booster Dose: Life Sciences Real Estate
Introduction
Our research indicates that, India has the The coronavirus pandemic has highlighted
potential to create a demand for approximately the importance of healthcare as well as the
96 million sq. ft. of life sciences research and role of domestic manufacturing of pharma
development real estate from 2021 till 2030. products and related research and
Consequently, life sciences research and development. As the world battles the
development real estate universe holds the COVID-19 disease and its after-effects, the
potential to attract private equity institutional pandemic has underlined the importance
investment amounting to USD 18 billion over of biotech and pharmaceutical industries.
the same period. This could have a lasting impact in
redefining consumer and policy-maker
perspectives.
To begin with, India holds a strong
position in the global pharmaceuticals
industry. However, to emerge stronger in
the post-pandemic world, the industry
needs to continue building on its strength
and at the same time take a giant leap
towards innovation. New capabilities need
to be introduced across business functions
to bring efficiencies and to help the
industry move up the value chain. This
transition will necessitate the development
96 18
of life sciences R&D real estate and
accelerated investments especially during
development phase. India needs to develop
a strategy that demonstrates its
resourcefulness and wherewithal as a
trustworthy partner to provide safe,
effective, and affordable platform for this.
Realistic Case In this report, we have endeavoured to
estimate the growth of life sciences R&D
segment in India along with the potential
private equity institutional investment
opportunity. Since the development of life
sciences related real estate is driven by
economic growth and specifically, growth
of life sciences industry, we have developed
simulations based on a range of growth
Real Estate Demand (mn sq. ft.)
rate estimates. Going forward, we shall
closely observe this space for more
Private Equity Investment (USD bn) developments impacting related real
estate.
4 5
 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

India Life Sciences Sector: Life Sciences Enablers

Current State & Growth

Structural Cost Increasing

Indian Pharmaceuticals India Pharmaceutical Market: Demographics
Factors Efficiencies Institutionalisation
- Current Positioning
India has a prominent and rapidly growing
presence in the global pharmaceuticals
Largest
industry. It is the largest provider of Largest vaccine
manufacturer
generic medicines globally, and supplies producer in the
62% of global demand for vaccines. India and exporter of
world
ranks 3rd worldwide for production by generic medicines
volume and 14th by value.
With the rising cost of healthcare, the • Geopolitical • Large Skilled • Manpower • Venture Capital
government is pushing for increasing Environment Workforce Cost Funding
generics consumption over branded drugs,
• Regulatory • Rental Cost
thus driving the growth of generic Active Generates over
Pharmaceutical Ingredients (APIs) Market growth Policies
USD 11 billion of
market. India is the source of 60,000
trade surplus rate 10-12% per
generic brands across 60 therapeutic
every year year Life Sciences Enablers
categories and manufactures more than
Source Savills India Research
500 different Active Pharmaceutical
Ingredients (APIs). The country is home to
more than 3,000 pharma companies with
a strong network of over 10,500
manufacturing facilities. The
pharmaceuticals market turnover reached
USD 39 billion (INR 3 trillion) in FY Cost of
2019-2020, up 9.8% YOY, growing as manufacturing
penetration of pharmacies rises2. Export growth
approx. 33%
18.7% YoY
lower than
western markets

Source Invest India, Government of India

Indian Pharmaceuticals rebalancing the supply-chain

- Prospects for Growth
Generic drugs, with 71% market share,
form the largest segment of the
pharmaceutical industry in India. This
is set to grow as exports of generics to
the USA rise, with branded drugs
worth USD 55 billion becoming
off-patent during 2017-2019.
In the current situation when global
pharmaceutical markets are
dynamics, we expect the emerging
markets to become increasingly
important in the coming decade.
Industry experts believe that the
Indian pharmaceuticals market, along
with those of China, Brazil and Russia,
will spearhead growth for emerging
markets.
Bolstered by government support, the Indian
pharmaceutical market is expected to grow
tremendously. According to the Indian Economic
Survey 2021, the domestic pharma market is
expected to grow 3x in the next decade. India’s
domestic pharmaceutical market is valued at
USD 42 billion in 2020 and is likely to reach
USD 65 billion by 2024 and further expand to
USD 130 billion by 2030. This is equivalent to a
CAGR of 12% between 2020 and 2030.

2. Department of Pharmaceuticals, Government of India

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Structural factors Rich demographic

COVID-19 has highlighted the importance of a
strong healthcare system, the lack of which can
put an entire nation’s economy and society at
risk. As India continues to fight COVID-19 and
stabilises its economic growth trajectory,
certain events and government policies have
presented opportunities that may impact the
overall structure of life sciences segment in
India the long term.
a) Geopolitical Environment: Geopolitical
issues have a far-reaching impact in the
post-pandemic world. The uncertain dynamics
between the USA and China have only
intensified since COVID-19 started. Many
other countries such as India, Vietnam,
Malaysia, Indonesia, and Japan are attempting
to sort various international issues and
pending disputes. This situation presents an
opportunity for India, in spite of a strong
competition from other countries. For India,
the goal would be to develop a strategy that
demonstrates how it can work as a trustworthy
partner to provide safe, effective, and
affordable medicines. It is important to note
that India is also dependent on China for
two-thirds of its imports of bulk drugs or drug
intermediates3.
b) Regulatory Policies: Indian
pharmaceutical industry can embark on a
vision of establishing India’s leadership in life
sciences, while driving deeper domestic access
and affordability. To ensure greater resilience
to external shocks, and to enforce greater drug
security and boost the capacity for domestic
production for critical bulk drugs and
high-value products, the Department of
Pharmaceuticals has launched three
supporting schemes (as shown below) to
incentivise the global and domestic players to
enhance investment and production in these
product categories. The schemes are
envisioned to contribute significantly to
achieving a higher objective of affordable
healthcare in the country and globally on a
sustained basis.
dividend - India has a
large skilled workforce
Indian workforce includes highly skilled medical
practitioners and specialists who bring significant
expertise and actively contribute to clinical research. This
is boosted by an astute and highly skilled team of people
working in the field of clinical research across the industry
and academia. Moreover, availability of a diverse patient
pool makes India as one of the most potential destinations
for clinical research.
Over 2,93,8004 pharmacy students graduated from India’s
education system during FY2019-2020, a growth of 50%
from FY2015-2016. For comparison, 14,8005 pharmacy
students graduated in the USA (the biggest global
pharmaceutical market6) during 2018-2019.

Supporting Schemes To Incentivise Pharma Sector The number of pharmacy

students graduating from India
in a year is 20 times than those
Scheme Production Linked Production Linked
graduating from the USA.
Scheme Name for Bulk Drug Incentive Scheme Incentive Scheme
Parks for Pharmaceuticals (PLI 1.0) for Pharmaceuticals (PLI 2.0)

01 02 03

Launch Timeline 21 July 2020 21 July 2020 3 March 2021

3 Bulk drug parks with Domestic manufacturing

Scheme Coverage Domestic manufacturing
common infrastructure of critical KSMs/ DIs and
of high-value products
facilities APIs

Financial Implication INR 3,000 crore INR 6,940 crore INR 15,000 crore

Approx. USD 400 mn Approx. USD 925 mn Approx. USD 2 bn

Source Department of Pharmaceuticals, Government of India

For more details on government policies, please refer to Annexure I. 4. All India Survey on Higher Education 2019-2020, Ministry
of Education, Government of India
5. N
 ational Center for Biotechnology Information, U.S.
National Library of Medicine
6. https://www.worldatlas.com/articles/countries-with-the-
3. https://pib.gov.in/PressReleseDetail.aspx?PRID=1606725 biggest-global-pharmaceutical-markets-in-the-world.html

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

At a scientist salary of USD 12,000 per annum, India enjoys

Since 2010, the life sciences industry in India has
89% arbitrage against the highest scientist salary in 13 countries
attracted USD 1.8 billion of venture capital funding.
(including Switzerland, USA, UK, China, Vietnam, Malaysia).

Cost efficiencies Growing number of institutional participants

India offers cost efficiencies in terms of lower opportunity for the domestic industry. 16.3 billion (INR 1.2 trillion) in FY 2019-2020. Life sciences companies often need VC Funding in Life Sciences, India
manpower cost and lower real estate rents As per industry analysts, India’s cost of significant amounts of capital to attain
These advantages result in lower cost of
than other major economies. This places the production that boosts the efficiency of Indian
production is approximately 33% lower than scientific and operational milestones, 500 448
Indian market in an advantageous position. that of the USA and almost half of that of particularly in clinical growth stages.
pharma companies, leading to competitive
The ability to manufacture high quality, low Europe7. Venture capital investments can help 450
exports. Indian pharma exports reached USD
priced medicines presents a huge business companies at all stages of development.
400
The COVID-19 pandemic accelerated deal 313
Scientist Salaries in Various Countries (USD per annum) activity and confirmed investor interest in 350
life sciences and healthcare companies.
300
Venture capital funding into the life
China 213
UK sciences industry in India stood at USD 250
36,550 448 million (INR 34 billion) in 2021 165 163
USA 46,680 Switzerland 155
through August, almost 3x of the annual 200
94,170 112,540 average of last 5 years. Apart from equity 111
capital, venture capital firms also bring 150
69 80
expertise, networks and resources that
100
47 39
allow companies to be successful. The life
7
sciences sector in India has immense 50
potential as validated by capital infusion
by investors into the segment.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source PitchBook, 2021 up till 20th August

Vietnam
15,800
country salary Key VC Funding Deals in Life Sciences in 2021, India

India
12,000 Malaysia Company Name Amount Raised (USD million)
Source Glassdoor, Savills Report “Science Cities, February 2021” 14,380 Ahmedabad
For more details on scientist salaries, please refer to Annexure II.

Axio Biosolutions
R&D Space Rents (USD/sq. ft./year) Hyderabad
61-113 20.9
UK SuVitas

22-105
USA At a rent of USD11-16/sq. ft. /year 17.5
for R&D space, India offers a
11-16 rental arbitrage of 82%-86%
INDIA compared to most other major Mumbai
Bengaluru
economies. Ampa Orthodontics
6-22 Private Ltd. HealthifyMe Wellness Onsurity
CHINA Private Limited Technologies
24.9
Source Savills India Research, Savills Report “Science Cities, February 2021” 28.9 18.8
Science cities are considered in this chart. UK – London, Cambridge, Oxford | USA – New York, Boston, San Francisco Bay Area, San Diego,
Seattle, Philadelphia, Research Triangle | India – Bengaluru, Chennai, Hyderabad, Mumbai, NCR, Pune | China – Shanghai, Beijing, Suzhou

Source Pitchbook
7. https://www.india-briefing.com/news/indias-pharmaceutical-industry-investment-trends-opportunities-incentives-18300.html/

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Life Sciences Related Real Estate

Growth Potential
Life sciences companies are an important driver of economic growth and real estate demand as these companies require specialised lab
space for research along with regular offices.

The stupendous growth in the software

Pivotal moment for life dominated by the life sciences industry. We sectors embarked on an unprecedented high
believe that the industry is at an inflection growth path, owing to some unique industry led to unprecedented growth
sciences sector growth point, with growth drivers already in place. advantages like cost arbitrage and large pool for the real estate sector as well.
In the manner that the last 2 decades were It appears to have reached the same cusp of skilled workforce.
defined by the rise of the Indian IT-BPM where IT and software had arrived a couple Currently, the IT-BPM sector accounts
sector, the next decade is very likely to be of decades ago; and from where these for about 50% share in overall annual
office leasing in India.
Growth Similarities between Indian Software Industry and Life Sciences Industry

Indian Software Industry Indian Life Sciences Industry

• The Indian IT-BPM sector has • India’s domestic pharma market is valued
been the flag-bearer of India’s at USD 42 bn (INR 3 tn).
exports over the last 20 years.
• The domestic pharma market is expected
• Over the decade, the industry to grow 3X in the next decade as per the
grew by 102% reaching USD 191 Economic Survey 2021. It is likely to reach
bn (INR 14 tn) in revenues in FY USD 130 bn (INR 10 tn) by 2030.
2019-2020.
• India’s growth will continue in the supply of
• The industry added 1.8 mn generics, as the country aims to move up
employees, 70% higher over the value chain and also focus on
the last 10 years. innovation and R&D.
• Nature of work has evolved
from providing back-end
support to digital
transformation, R&D and
analytics.

Source Savills India research

8. https://www.indiabudget.gov.in/economicsurvey/doc/vol2chapter/echap09_vol2.pdf

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Life Sciences Real Life Sciences R&D Real Estate

Estate Specifications Future Scenarios and Projection Model
Similarities and Differences with
The development of life sciences related real estate is driven by economic growth and specifically, growth of the life sciences industry.
Office Real Estate Hence, we have built-in three scenarios to estimate and project the sector’s path forward.

Life sciences facilities and office space overlap to a certain extent; but,
Scenario Assumptions
there are distinct differences related to certain structural characteristics,
costs of development/ongoing capex, and tenant base. Realistic Case Optimistic Case
Assumption Rationale Assumption Rationale
Key Differences Between Life Sciences The average growth in the life The life sciences industry growth
Properties and Traditional Offices in India sciences industry in India has anticipated from global supply-
historically been around 10%-12%. chain rebalancing and favourable
The industry will continue to grow regulatory regime plays out faster
Structural: at a similar pace over the next 10 Scenario than as factored in the Realistic
years. case.
Life sciences lab spaces have certain
elements that differ from traditional
offices. These include higher floor load Assumption Metric* Assumption Metric*
capacity, higher floor-to-floor ceiling CAGR of Life Sciences Industry CAGR of Life Sciences Industry
heights, heavier HVAC usage, and Revenue over the next 10 years: Revenue over the next 10 years:
increased environmental control. 12% 16%
Additionally, life sciences properties
tend to be “low and wide” with larger
Conservative Case
floor plates.
Assumption Rationale
Assumption Metric*
The life sciences industry growth anticipated from
global supply-chain rebalancing and favourable CAGR of Life Sciences Industry Revenue over the
Costs: regulatory regime takes longer than as factored in next 10 years: 9%
Initial building infrastructure generally the Realistic case.
costs more in case of life sciences
Source : Savills India Research
properties than traditional offices, given *This is a subjective assumption, based on our discussion with industry experts.
the specific needs of lab tenants.

Per our estimates, in a Conservative Life Sciences R&D Real Estate Demand Potential in India
scenario, India has the potential to
Tenants: create a demand for approximately 72 from 2021 to 2030
Life sciences properties are typically million sq. ft. of life sciences research
and development real estate from 160 152
occupied by those involved in the
2021 till 2030. However, this may go
medical research industry: research 140
up to 152 million sq. ft. in an
institutions, pharmaceutical companies, Optimistic scenario. Realistically, 120
biotechnology firms, medical device this is estimated as 96 million sq. ft. 96
companies, and the like. Our estimate takes into 100
consideration the demand for life
80 72
sciences R&D real estate facilities as
Source : Savills India Research
well as R&D spaces in multi-tenanted
For more details on life sciences R&D asset specifications, 60
office buildings.
please refer to Annexure III.
40

20

0
Conservative case Realistic case Optimistic case

Source : Savills India Research

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Per our estimates, life sciences research and development real estate
universe in India holds the potential to attract private equity
institutional investment amounting to USD 18 bn over the next ten years.

Opportunity for Investors

Private Equity
Investment
Opportunity
While we expect the life sciences
industry to benefit from strong
demand drivers and the current
market environment, there are
important investment
characteristics and considerations
worth noting.
Over the next decade, we estimate
the requirement of life sciences
research and development real
estate universe in India to grow to
somewhere between USD 16 billion
(INR 1,200 billion) and USD 34
billion (INR 2,550 billion) as per
our Conservative and Optimistic
scenarios. Realistically, the Life Sciences R&D Private Equity Investment In our view, key considerations for investing in similar-quality office cap rates. However, life sciences sector coupled with unavailability
requirement is estimated to be
around USD 21 billion (INR 1,575 Potential in India during the current decade life sciences real estate is the value of the increase in investible universe and deepening of of core assets during the initial phase of
billion). location and the relative market rent growth. investor pool is likely to drive compression in development is likely to drive higher rental
Life sciences cap rates are currently higher than cap rates. Further, strong growth in demand for growth offering attractive returns to investors.
This could provide institutional
investors with ample opportunity
Optimistic
to increase allocations to the
sector, especially in the
27 case Investment Considerations - Life Sciences R&D vs Traditional Office, India, October 2021
development space. Realistically,
as per our estimates, life sciences
research and development real Life Sciences
estate universe in India holds the Realistic R&D
potential to attract private equity 18 case
11-16 8%-9% 138-178
institutional investment
amounting to USD 18 billion
(INR 1,350 billion) over the
next ten years.
Conservative
14 case Parameter Rent
Cap Rate USD Price
(USD/sq. ft./year)
per sq. ft.

Source : Savills India Research

Traditional
Office 14-18 7.5%-9% 187-200
Life Sciences in India:
Real Estate and Private Equity Investment Potential, Cumulative 2021 to 2030
Source : Savills India Research

Real Estate Demand (mn sq. ft.) Private Equity Investment (USD bn)

72 14 96 18 152 27

Conservative Case Realistic Case Optimistic Case

Source Savills India Research

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Life sciences R&D real estate is an emerging alternative asset class for
investors as the industry and its enabling ecosystem is resilient.

Challenges Conclusion
The life sciences real estate sector offers an attractive investment opportunity with limited cyclical risks. However, the
early growth phase does imply few challenges that investors and industry participants need to factor in while drawing
out their strategies. Life Sciences industry demand than the broader economy. In our view, life
sciences employment is well positioned from both a
is resilient near-term and long-term perspective. History suggests
The COVID-19 pandemic has brought the Life Sciences the sector’s employment base is resilient during
Political Uncertainties: sector to the centrestage. Moreover, its long-term recessionary periods. For instance, when the GDP
The growth envisaged for the life sciences sector is growth is considered relatively decoupled from the numbers depicted negative growth in 1991 (-1.1% GDP
contingent on tailwinds driven by the global political vagaries of economic cycles. growth), 2008-2009 (-0.3% and -4.1% GDP growth in
2008 and 2009 respectively) and in 2020 (-9.9% GDP
environment and supply-chain rebalancing. The Historical evidence from prior recessions suggests that growth) in the United Kingdom, the employment in life
demand for life sciences R&D may turn out to be global life sciences sector had witnessed stronger sciences sector still grew year-on-year.
lower than anticipated in case India’s positioning as
preferred pharma manufacturing / R&D destination
changes.
Life Science Employment vis-a-vis GDP Growth in the UK

Scalability: 8.00
4,500
The sector is still in early stages of evolution with
limited participants that have adequate track 4,000 6.00
record, akin to the status of the industrial and
4.00
warehousing sector a decade ago. Hence, the 3,500
sector might falter in offering the scale required 2.00
by large institutional investors at the onset. 3,000

thousands

% change
Nonetheless, we believe that investing in the 0.00
2,500
sector at present will provide a significant early
-2.00
mover advantage in terms of scalability and
2,000
tenant relationships as the sector matures over -4.00
time. 1,500
-6.00
1,000
-8.00

500 -10.00
Development Exposure:
India has limited core life sciences real estate 0 -12.00

2000

2004

2006

2008
2002

2020
1980

1990

2010

2014
1984

1994

2016
1986

1996

2018
1988

1998

2012
1982

1992
investible stock at present. Hence, majority of
the growth will come from developing new
facilities that entail typical development and Employment in human health and social work (LHS) Real GDP growth (RHS)
leasing risks. We believe that scarcity of core
stock and strong growth tailwinds will deliver Source Oxford Economics, International Monetary Fund
healthy development profits. We also foresee
increasing investor appetite for Indian life The World Economic Forum suggests that COVID-19 is could increase both to fight the current COVID-19
sciences real estate as the sector gains scale perhaps not the last pandemic, and that better pandemic, and to build a better infrastructure for
over time, which in turn bodes well for growth preparation is needed to fight future disease outbreaks. future.
investors who invest in development assets in As a result, we believe that life sciences research funding
the early phase of growth.

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 On a Booster Dose: Life Sciences Real Estate On a Booster Dose: Life Sciences Real Estate

Annexure I Annexure II Annexure III

Regulatory Policies to Incentivise Annual Scientist Salaries in Life Sciences R&D Asset
Pharma Sector in India Various Countries (USD) Specifications

1. Scheme for Bulk Drug Parks - Notified on 21 July 2020 Example of Typical Life Sciences Building
The scheme on Promotion of Bulk Drug Parks for financing Common Switzerland Ireland Specifications in Mumbai, Maharashtra (India)
Infrastructure Facilities in three Bulk Drug Parks with financial 112,540 47,570
implication of INR 3,000 crore for 2020-2021. Assistance under the
scheme will be admissible for such facilities by State Government in Bulk Parameter Requirement
Drug Parks. Three Bulk Drug Parks will be supported under the scheme
and will have common facilities such as solvent recovery plant, distillation UK
USA
plant, power and steam units, common effluent treatment plant etc. 46,680 Ceiling
94,170 4.5 - 5 mtr
Height
2. Production Linked Incentive Scheme for Bulk Drugs (PLI 1.0)
– Notified on 21 July 2020 • 1 500 kg/sq.m. for max. of 50% total
China
The Production Linked Incentive (PLI) Scheme is launched for promotion Germany Floor built-up area
36,550
of domestic manufacturing of critical Key Starting Materials (KSMs)/ 80,410 Strength • Roof should be able to take load of chiller
Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) plant & other utilities, if desired
in India. Incentives of up to INR 6,940 crores have been approved.
A financial incentive will be given to eligible manufacturers of identified Floor Plate 10,000 - 15,000 sq.ft., max. preferred
41 eligible products9 which covers 53 APIs, for 6 years, committed Australia Vietnam
investment and sales made by selected applicant for the eligible products. 69,680 15,800
The rates will vary between 5% and 20% for fermentation-based products • P
 rovision for Installation of Effluent
Effluent
and chemically synthesized products. Treatment Plant (ETP)
Discharge
• Common ETP connectivity
France
3. P roduction Linked Incentive Scheme for Pharmaceuticals 60,680
Malaysia
Sewage
(PLI 2.0) - Notified on 3 March 2021 14,380
Treatment To be provided by developer
As an extension of PLI 1.0, this scheme incentivises the production of high Plant
value goods such as biopharmaceuticals, complex generic drugs, patented
India
drugs, drugs nearing patent expiry, cell based or gene therapy drugs, along Singapore 12,000 Safety Each floor should have emergency exits
with world class pharma R&D. 52,780
The objective of the scheme is to enhance India’s manufacturing
capabilities by increasing investment and production in the sector and
contributing to product diversification to high-value goods in the As per Maharashtra Industrial Development
Parking
pharmaceutical sector. One of the further objectives of the scheme is to Corporation (MIDC) regulations
Japan
create global champions out of India who have the potential to grow in 48,970
size and scale using cutting-edge technology and thereby penetrate the • G +4 or G+6, depending upon plot size and
global value chains. Incentives of INR 15,000 crores have been approved. No. of FSI
Floors • Basement, if provided, is to be used for
Additionally, the Ayushman Bharat Yojana (a centrally sponsored National installation of utilities
Health Protection programme) will provide poorer households with
affordable access to healthcare facilities, while also improving health Basic High Tension connection is to be
insurance penetration. It is estimated to benefit 13.17 crore vulnerable provided by developer; client may upgrade
Power
families (about 65 crore beneficiaries)10. As on 4th February 2021, as per their specific requirement at their
approximately 1.59 crore hospital admissions worth INR 19,714 crore have cost
been authorised through a network of 24,321 Empanelled Health Care
Providers under Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana Building At least one side on road facing side should
(AB-PMJAY). This is an opportunity for the industry to help India’s Elevation have glass facade
underserved masses with affordable drugs.
Source Savills India Research

Source Glassdoor, Savills Report “Science Cities, February 2021”

9. https://static.investindia.gov.in/s3fs-public/2020-08/PLI%20bulk%20drug%20schemes.pdf
10. https://pib.gov.in/PressReleseDetail.aspx?PRID=1696433

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 Private Equity in Indian Real Estate

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and is a premier professional international
property consulting firm. With full-service offices
in Bengaluru, Mumbai, Delhi-NCR, Chennai,
Pune and Hyderabad, the firm serves Occupiers,
Investors and Developers of Real Estate.
leasing, project management, capital markets,
valuations, research, consulting, industrial and
logistics, and residential services. Starting in
India in 2016, the company employs over 450
professionals.

Authors Central Management Regional Management

Diksha Gulati Anurag Mathur Bhavin Thakker
Senior Manager Chief Executive Officer Managing Director - Mumbai
Research & Consulting Savills India Head - Cross Border Tenant Advisory
diksha.gulati@savills.in anurag.mathur@savills.in bthakker@savills.in
Megha Maan Kaustuv Roy Sarita Hunt
Director Managing Director Managing Director
Research & Consulting Business Solutions Bengaluru
megha.maan@savills.in kaustuv.roy@savills.in sarita.hunt@savills.in
Suryaneel Das Naveen Nandwani Shweta Sawhney
Assistant General Manager Managing Director Managing Director
Research & Consulting Commercial Advisory & Transactions Delhi-NCR
suryaneel.das@savills.in naveen.nandwani@savills.in shweta.sawhney@savills.in
Abhinav Pal Praveen Apte
Manager Managing Director
Capital Markets
Research & Consulting Pune
abhinav.pal@savills.in Diwakar Rana praveen.apte@savills.in
Managing Director
Arvind Nandan diwakar.rana@savills.in Anup Vasanth
Managing Director Managing Director
Research & Consulting Chennai
arvind.nandan@savills.in Media Queries anup.vasanth@savills.in

Nitin Bahl Sesha Sai

Director Managing Director
Marketing, Sales and Strategy Hyderabad
nitin.bahl@savills.in sesha.sai@savills.in

Gurugram Mumbai Bengaluru

3-A, Second Floor, Building 9B 403, Tower B, Level 4, The Capital 15th Floor, SKAV SEETHALAKSHMI
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Haryana, India Maharashtra, India Karnataka, India

Chennai Pune Hyderabad

Savills, 5th Floor, North Wing WeWork Futura Office No. 02A114, WeWork
Harmony Square, New No. 48 & 50 Magarpatta Road Krishe Emerald, Hitech City
Praksam Street, T. Nagar Pune 411 028 Hyderabad 500081
Chennai 600017 Maharashtra, India Telangana, India
Tamil Nadu, India

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