Penicillin shot: Will Aurobindo Pharma’s audacious bet rejuvenate antibiotic production in India?

backed by the production linked incentive (PLI) scheme—where the Indian government provides financial incentives based on incremental sales—and a minimum import price, Aurobindo is reversing that arc.In an exclusive interview with Mint, Madan Mohan Reddy, a whole-time director of Aurobindo Pharma, said the decision was far from impulsive. “It wasn’t a tough call to make,” he said.

“We had discussed the viability of the project before we set up the plant.”The company’s prior experience in the molecule, its understanding of global markets, and the government’s support structure all factored into the decision to invest over ₹2,500 crore—one of its single largest greenfield bets to date.During the company’s Q2 FY26 earnings call last November, the management said the plant, in Kakinada, Andhra Pradesh, had commenced operations of Pen-G on 1 July last year. During the quarter, it produced around 1,050 metric tonnes (MT) by operating at 40%-50% capacity, amounting to approximately 6,000 MT production on an annualized basis, the management noted.Progress has been more pronounced since.

Earlier this month, chief financial officer S. Subramanian shared updated production metrics: “Based on our current production level, we expect to produce more than 10,000 MT on an annualised basis over the next 12 months.”He added that yield levels were improving consistently, indicating that operational challenges inherent in fermentation-based production were being systematically addressed.The numbers are telling.

India’s annual Penicillin G demand is around 9,000 tonnes. Aurobindo has created capacity of 15,000 tonnes.