|
 Telangana stands as a powerhouse in India's pharmaceutical sector, boasting a remarkable ecosystem of over 800 industrial units and a strong academic foundation with more than 200 pharmacy colleges. However, the path to sustained growth, especially for Small and Medium Enterprises (SMEs), and adaptation to global shifts requires concerted effort, says the newly elected president of Telangana State board of Indian Drug Manufacturers Association, KV Rambabu.
In an exclusive interview with Peethaambaran Kunnathoor, special correspondent of Pharmabiz, he shares invaluable insights into the State's pharmaceutical future, emphasizing that its trajectory hinges on strategic collaboration between industry, academia, and government.
Excerpts:
How would you rate the pharma industry in Telangana State when compared to other leading states like Tamil Nadu, Karnataka, Maharashtra, and Gujarat? What are Telangana's key competitive advantages and areas where it might learn from others?
Telangana has firmly established itself as a pharmaceutical powerhouse in India, often referred to as the “Bulk Drug Capital of India.” While Maharashtra and Gujarat have traditionally led in formulations and exports, Telangana stands out for its concentration of bulk drug units and its rapidly evolving formulation sector. Our key advantages include a robust ecosystem of manufacturing clusters, R&D facilities, premier research institutions, pro-industry government, and large pool of technically qualified workforce. However, we can still learn from Gujarat’s integrated industrial infrastructure and Maharashtra’s global marketing strategies to further elevate our position.
Looking ahead, what is your vision for the future of the pharma industry in Telangana? What key trends or developments do you foresee shaping its trajectory in the coming years?
Our vision is to make Telangana a global hub for end-to-end pharmaceutical manufacturing, from raw materials to finished dosages. Key trends shaping this trajectory include biosimilars, green chemistry, and self-reliance in APIs. Hyderabad had now become a preferred location in India for Global Bio Pharma companies to set up their GCCs. We expect Hyderabad pharma ecosystem to attract more investments unlocking scale, sustainability, and global competitiveness for the industry.
As the President of Telangana IDMA, you are deeply involved in the organizational activities and have a comprehensive understanding of the state's pharma sector. Could you please provide a brief overview of pharma industry in Telangana?
Telangana is home to more than 800 pharmaceutical manufacturing units. Among these, a large proportion (approx. 70%) are small and medium-sized enterprises (SMEs), with 40–50 prominent national, multinational companies having a significant footprint here. We also have a strong presence of R&D and biotech firms, backed by institutions like NIPER, CCMB, and IICT.
With the new Schedule M implementation and other evolving regulations, many small and medium pharma industrial units are reportedly facing significant challenges, sometimes even leading to closures. What is the current situation for these units in Telangana?
Small-scale units face challenges from stringent compliance demands, particularly in adapting to revised Schedule M norms. While the government has taken positive steps such as single-window clearances and capital subsidies, more handholding is needed. We at IDMA have been advocating for phased implementation, interest subvention on technology upgrades, and common facilities in pharma parks to ease the burden on MSMEs.
How do you assess the economic impact of Covid-19 on the Telangana pharma industry?
The pandemic tested the resilience of our industry, and Telangana’s pharma sector stood up admirably. We ensured uninterrupted production of essential medicines and ramped up exports despite logistic hurdles. The crisis also underscored the importance of building indigenous API capacity, a lesson we are actively acting on today.
How would you assess the overall revenue loss experienced by the pharma sector in Telangana during the pandemic period?
While major companies managed to stabilize their operations, many MSMEs faced revenue losses ranging from 20–40% during the peak disruption period. Raw material cost fluctuations, supply chain disruptions, and labour shortages were the main contributors. Recovery has been steady but unequal across the sector.
Considering the sequential development of the pharma industry in Telangana, what specific initiatives has Telangana IDMA undertaken to support and safeguard the SME sector?
IDMA association in the state is actively working to empower the Pharma SMEs. IDMA initiated several key programs, including valuable workshops focused on Good Manufacturing Practices, Schedule M compliance, and export readiness, equipping businesses with crucial knowledge. Besides, the association has proactively engaged with regulatory bodies to advocate for simpler compliance procedures for easing the burden on SMEs. To foster technological advancement, IDMA has also facilitated digital enablement for its members through strategic partnerships with various IT firms. These are some of the efforts taken by the industry body to support the growth and operational efficiency of local pharmaceutical companies.
Many SSI units rely on contract manufacturing for their survival. In your view, what concrete steps should the government take to further bolster the pharma sector, especially in supporting these units?
To promote the SSI units in contract manufacturing, the IDMA has advocated for fiscal incentives, specifically for units involved in third-party manufacturing, recognizing their unique role in the industry. Additionally, the association has suggested the establishment of dedicated common testing and warehousing zones within pharma parks, which would significantly reduce operational burdens and costs for smaller manufacturers. A proposal for streamlining procurement policies to encourage local sourcing for public health programs has been submitted to the government.
Telangana has been actively promoting the development of pharma parks. How do these pharma parks specifically contribute to the growth and development of pharma industries in Telangana?
While govt is planning to develop large scale integrated pharma parks, existing pharma/biotech parks like Genome Valley, Jadcherla Green Industrial Park and other industrial clusters in Jeedimetla, Pashamylaram, Bollaram, Cherlapally, Nacharam, Pragati Nagar, etc provide shared infrastructure, regulatory support, and ecosystem synergies. They help reduce overheads for small units and attract global partnerships. These parks are central to Telangana’s vision of becoming a globally integrated pharma manufacturing hub.
From your perspective, what fundamental strategy is essential for the overall growth of the SSI pharma sector in Telangana, enabling these units to not only thrive in the domestic market but also successfully penetrate the export market?
IDMA prioritizes empowering SSI units to expand and compete globally. We have a crucial three-pronged strategy which involves technology upgradation through soft loans and shared capital expenditure. Additionally, we focus on capacity building for international certifications like WHO-GMP and EU-GMP, and marketing facilitation through export consortia and trade fairs.
On the regulatory front, how do you view the enforcement activities of the State Drugs Control Department? Similarly, how helpful are the services provided by the office of the CDSCO for businesses engaged in overseas activities?
The Telangana Drugs Control Department has been cooperative and proactive, particularly during the pandemic. However, faster turnaround times for licenses and approvals remain a demand. CDSCO’s zonal office in Hyderabad has been instrumental in guiding firms engaged in exports, and further digitization of its processes will add significant value.
How will Telangana IDMA leverage the State's abundant pharmacy colleges and industrial units to enhance industry-academia collaboration?
In fact the pharmacy institutions in Telangana are the strength of the pharmaceutical industry in the State. The technical manpower required for the pharma industry is getting generated in the institutions. Compared to many other states, pharmacy colleges were set up in Telangana very earlier. So, we face no shortage for the availability of technical manpower, it is a unique advantage for the state’s pharmaceutical sector. As regards the industry-academia tie-up, the industry will work with the institutions and provide facilities for the students’ practical trainings in our facilities.
|