Maharashtra, which had always been in the forefront of Indian pharma
industry should do more to encourage the industry to set up more
manufacturing units in the state, feel a cross section of industry
experts.
Though the state is also taking a lot of initiatives,
it needs to move at a much faster pace since competition has intensified
and investments in manufacturing had been gradually shifting to
other states in the past decade due to tax breaks and sops offered by
other states, they point out.
A fair degree of industrialisation
took place in the states like Himachal Pradesh, Uttaranchal and now at
Sikkim. Sikkim and other north-eastern states have taken a lead in
reading the pulse of global pharma industry to tap the $ 100 billion
outsourcing opportunity by providing much needed infrastructure and
incentives and attracting local and foreign players. These states have
also introduced carefully drafted industry-friendly policies.
Also,
the southern states of Andhra Pradesh and Tamil Nadu have seen
significant industrialisation as far as the pharma sector is concerned.
Much capacity expansions have been happening in these states or within
SEZs.
Moreover the supply and logistics infrastructure in these
states also slowly matured and now are comparable to that in
Maharashtra. As the industry grew in the country, states such as
Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu are emerging as
alternate pharma hubs
Now that the tax benefits in states like
Himachal Pradesh and Uttarakhand have been abolished, it is the right
time to offer more incentives to lure more investors to the state, they
point out.
Despite the developments in other states, Maharashtra
still has a very conducive industrial as well as financial climate.
The government is probably more industry-friendly compared to many other
states that helps in smooth operations.
As a cosmopolitan
state having abundant resources with multicultural talent coupled with
required infrastructure, R & D and financial robustness, Maharashtra
has enormous opportunities to regain its past glory in pharmaceutical
sector in the days ahead, says NR Munjal, President, Indian Drug
Manufacturers’ Association (IDMA).
Maharashtra could retain its
status as a pharma hub both in terms of manufacturing and marketing,
despite the recent spurt of industrialization in other states, he
points out.
The state still plays a pivotal role in
pharmaceutical sector of India as the majority of the top 10 pharma
companies in India are based in Maharashtra. Nearly 40 per cent of drugs
and pharmaceuticals produced in India are manufactured in Maharashtra.
According to the latest FDA statistics, Maharshtra has 755 manufacturing
units that are GMP compliant out of which 188 are world health
organisation (WHO) compliant.
The state has skilled, efficient
and competitive manpower, advanced technology, R & D, infrastructure
and manufacturing facilities.The industrial climate is very conducive
for the growth of pharma industry. The state has always had an edge
in attracting investment primarily due to the industry friendly
atmosphere and also the infrastructure that is in place.
The
successive governments had encourage investment in the pharma industry.
The government support received has been substantial and has been the
one of the main reasons the state has managed to remain a principal
destination for all pharma companies whether Indian or MNCs
The
state has also been a meeting ground for people of varying skill-levels
and socio-economic backgrounds. A very cosmopolitan state , it has
always been a rich breeding ground for innovation.
Many companies
like J B Chemicals, Blue Cross Labs, Indoco Remedies, Zydus Cadila,
USV, Ajanta Pharma, Wockhardt, Cipla have their units in various regions
of Maharashtra. Reliance Life Sciences, Alcon Biosciences, RPG Life
Sciences are some of the leading biotech producers in the state.
There
are about 4,000 large, medium and small units in the state with
manufacturing units operating from Mumbai, Thane, Palghar, Patalganga,
Nashik, Sinnar, Aurangabad, Pune, Nagpur and Taloja.
Maharashtra
has a clear edge on all infrastructural requirements. Good road , rail
and air connectivity, adequate power supply and a thriving pharma
industry with many manufacturing units and clusters, SPZ etc are added
attractions. The state also has a wide network of retail chemists. It is
understood that all pharma companies have a presence one way or the
other in the state.Being the financial epicentre of the country was also
an added advantage.
Mumbai, the capital of Maharashtra as well
as the ‘commercial capital’ of India , has headquarters of about 80
per cent of all leading Indian pharma companies.
Mumbai is also a
port of choice to many industries, especially pharma. With a large
market, big hospitals, research and educational institutions and good
communication and transport in place, Mumbai accounts for maximum number
of head-offices and marketing offices of pharma companies. One of the
benefits that Mumbai offers is ample availability of technically
qualified manpower including scientists. Easy connectivity with the rest
of the world makes it easier to set-up research activity in Mumbai.
The pharmaceutical companies in Maharashtra have successfully spread
there business operations in highly regulated markets as well as
emerging markets by launching new products for several therapeutic
areas. Over the years, these companies have upgraded facilities with new
technology, invested in research and development (R&D), entered
aggressively in highly regulated markets, set up subsidiaries in other
countries, acquired facilities abroad and entered tie-ups with
multinational entities.
Ashok Chavan, the Chief Minister
while stressing the significance of the fast paced growth of industrial
sector in the state had opined that biotechnology, after IT, had the
potential to transform the lives of the people in the state by hugely
impacting agriculture, animal husbandry, health, environment protection
and material transformation, for which the state has already announced
Biotechnology Policy 2001.
In a recent interview he had pointed
out that the state government is trying to develop biotech industry in
order to help to develop affordable and more cost -effective drugs and
devices to counter diseases common to India and to tropical and
sub-tropical areas to reduce the disease burden.
He also said
the state wants to enhance the value and utility of medicinal plants and
traditional systems of medicine by developing new products with global
potential. To develop and promote utilisation of animal diagnostics and
vaccines for preventing losses and increasing realisation from livestock
and poultry is yet another aim. To improve the overall nutritional
security in the state and to improve the quality of life through better
health and better environment is also on the agenda of the state, he
added.
To keep ahead not only of other states but even other
advanced economies around the world, it is imperative that the
infrastructure is upgraded. Improvements in infrastructure will help to
enhance the level of investments and propel industrialisation in
Maharashtra , say industry leaders.
As the Indian pharma industry
is now venturing into new areas and exploring growth opportunities
beyond the traditional APIs and generics segments and pharma research,
the whole pharma industry will benefit if Maharashtra government heeds
to the ideas put forth by senior pharma specialists, they add.
The
Government must also take necessary steps to enact tough laws on data
security and IP related issues to mitigate offshoring challenges. This
would encourage newer players to enter into the fray and help more
established ones to build on their foundations, they opine.
Development
of PSEZs is a key step that is needed for the growth of the pharma
industry, they point out.
According to the IDMA Secretary
General, Daara Patel, the best incentive to boost pharma trade in the
state would be to abolish Octroi. Maharashtra is the only state in
India where cities levy Octroi on goods with the Mumbai municipality
imposing the duty between 5.55 to seven per cent. Though Octroi has
been exempted on life saving medicines and equipment, it is still
imposed on other medicines.
While there is no provision for
additional charges like Octroi on medicines that are under price
control in other states, patients in Maharashtra end up bearing
additional costs because of the Octroi which increases costs of many
vital medicines, he added.