Leading the way in becoming an inspirational model for pharmaceutical sector, Gujarat has evolved into a hub for major pharmaceutical companies. Many investment-friendly initiatives and growth propelling policies in industries such as pharmaceutical & biotechnology, textile, auto, gems & jewellery, IT, maritime & port and engineering are significantly driving growth for the state.
1. The only manufacturer of Doxorubicin HCL Liposome injection in the World at present along with being the only manufacturer of Vitamin C and Dapsone in India.
2. A hub for large pharmaceutical companies- employing around 85,000 people 3. Increasing accessibility and Ease of Doing Business has made Gujarat one of the most preferred destination for investment globally
Pharmaceutical industry is one of the oldest industry in Gujarat, with the state being home to approximately 3,500 drug manufacturing licenses. Case in point, Alembic Chemical Works Co. Ltd. is one of the oldest pharmaceutical companies in India and was set up in Vadodara in 1907.
With Vibrant Gujarat Global Summit successfully projecting Gujarat as a preferred investment destination, the state has seen noticeable increase in investment across sectors. With regards to pharmaceutical industry, this summit has been highly beneficial with many well established names like Jubilant Life Sciences, Sun Pharmaceutical Industries, Piramal Pharmaceutical development services, Torrent Pharmaceutical, Zydus Hospital and Healthcare, etc. signing MOU’s with the State Government committing to invest in this sector. Today, these pharmaceutical companies have Gujarat as their hub.
Over the last few years, Gujarat’s contribution in the growth of India’s pharmaceutical industry has been significant. The state commands more than 20 percent share of both India’s pharmaceutical turnover and exports. With a turnover of $6.7 billion in 2015-16, the pharmaceutical industry in Gujarat employs around 85,000 people.
With over 100 years of excellence in this sector, Gujarat is the only manufacturer of Doxorubicin HCL Liposome injection in the World at present along with being the only manufacturer of Vitamin C and Dapsone in India. 80% of world’s Isoniazid (used for treatment of tuberculosis) is produced in Gujarat along with 70% of India’s cardiac stents.
1) 51 US Food and Drug Administration (USFDA) approved plants in India are from Gujarat
2) 255 WHO-GMP certified manufacturing units are located in Gujarat
3) As of the year 2015, 135 medical devices manufacturers are based in Gujarat which accounts for 53% of the total medical devices manufacturers in the country
Policies elevate pharmaceutical sector in Gujarat
State Government initiatives of promoting generic drugs by giving them preference in Government purchases, establishment of National Institute for Pharmaceutical Education and Research (NIPER) for Human resource development and Gujarat Genomics Initiative, Genetic Diagnostic centers and Gene Banks is contributing towards further enriching this sector in Gujarat. The pharmaceutical industry in Gujarat, especially in the MSME space is certain of growing further with State Government’s emphasis on Capital Investment Subsidy, Interest Subsidy, Venture Capital, Quality Certification, Technology Acquisition, Patent Registration and saving in Consumption of Energy & Water.
Overview of Indian pharmaceutical industry
With 70 per cent of market share (in terms of revenues), generic drugs form the largest segment of the Indian pharmaceutical sector. India supplies 20 per cent of global generic medicines (market exports in terms of volume), making the country the largest provider of generic medicines globally and is expected to expand even further in coming years. Over the Counter (OTC) medicines and patented drugs constitute 21 per cent and 9 per cent, respectively, of total market revenues of US$ 20 billion.
- The exports in pharma sector has been increasing year on year with $10.1 billion in FY 2012 to $ 14.9 billion in FY 2015
- By 2020, India is expected to be 6th largest market globally
FDI boosts pharmaceutical sector in India
Govt’s decision to increase FDI up to 100% in Indian pharmaceutical sector is expected to boost mergers and acquisitions and private equity investments in the sector. India’s pharmaceutical market may reach $20 billion this year and about $55 billion by 2020 from about $18 billion as of 2014, clocking a compounded annual growth rate (CAGR) of over 22%, according to a joint study by the Associated Chambers of Commerce & Industry of India (ASSOCHAM)-TechSci Research released in June. The pharmaceutical sector in India will register higher growth during the course of the next five years (22%) as compared to a CAGR of about 14% clocked by the sector during 2010-14, the report said.
Export of pharmaceutical products from India is likely to exceed the $14 billion mark this year and may reach about $20 billion by 2020, registering a CAGR of about 8%, according to the ASSOCHAM-TechSci Research study.
- Attracted FDI worth $ 13.5 billion during January 2000 to December 2015 (5% of total FDI)
- Up to 100% FDI allowed for pharmaceuticals sector
- Up to 100% FDI allowed for manufacturing of medical devices/equipment
