Apart from being hailed as the pharmaceutical hub of the country, another sector that is fast caching up the frenzy of this industry-friendly state is the medical device sector. Suja Nair Shirodkar taps the latest in this sector from Gujarat.
In spite of having huge growth potential within the country, medical device sector still remains to be one of the fields that yet has to be explored by many. Only a handful of the states in the country has taken active initiative to push this niche but highly dependable sector at a growth trajectory. Among these few, Gujarat tops the list by pioneering many industry-friendly policies and setting examples for others to attract companies to enter this sector.
Born leader
Today, Gujarat has the largest cluster of medical device industry in the country and by doing this the state government is focusing on developing this segment especially for exports. At present, there are 115 units manufacturing medical devises that are operational in the state.
Dr H G Koshia, commissioner, Gujarat State Food and Drug Control Administration (FDCA) informs that Gujarat ranks first in the country to manufacture not only the conventional medical device made out of special plastics but also new high tech medical device like cardiac stents, orthopaedic implants and intra ocular lenses.
The state contributes about 60 per cent of the total cardiac stents that are manufactured in the country whereas around 30 to 40 of intraocular lenses and orthopaedic implants in the country are produced from Gujarat.
D L Pandya, who is a senior medical device industry consultant from Gujarat, reasons that this is particularly because of leading position of the State in various industrial sectors including petrochemicals, drugs and pharmaceuticals, engineering, pharmaceuticals and plastics processing machineries etc. which support the growth of medical disposables and equipments manufacturers.
He informs, “The availability of plastic raw materials have played a very vital role in the development of this sector in Gujarat. The entrepreneurial strength of the people has also contributed immensely for not only the medical device industry but a large number of supply chain industry as well.”
Latest updates
One among the many achievements that Gujarat can boost of is that of the United Nations Industrial Development Organization's (UNIDO's) identification of Gujarat as the leading cluster location for pharmaceuticals and medical device sectors.
Recently the Gujarat Industrial Development Corporation (GIDC) had announced to set up a 'medical device cluster' in the state for which the government has identified over 100 acres of land in Sanand to develop this cluster. It has already initiated the process of land allotment during the Vibrant Gujarat 2011. It is reported that the government of Gujarat is investing around <span class=WebRupee>Rs.</span> 30 crore for this project.
According to Dr Koshia, “Since there is a huge competition in this sector globally, it becomes imperative for us to equip ourselves to global standards if we want to have an edge over our competitors. The Gujarat government is trying the best to make sure that we provide all the impetus to the industry so that they can leverage the maximum for the benefit of the industry.”
He further said that over the years there has been a steady increase in the number of applications being filed for new medical devices and licenses in the state. In fact, he pointed out that during this year's Vibrant Gujarat, almost three to four Memorandum of Understanding (MoU) were signed between the state government and companies to set up manufacturing units in the state.
“Out of the four companies who have signed the MoU's, one is ready to start its production and is waiting for the final approval from the DCGI's office. This is a proof of the commitment the state has to develop this sector, but it must be noted that having a proactive government is just not enough, to compliment that we also need to have an equally responsive industry. The industry in the state has been very co-operative and supportive of all our initiatives which has helped us a lot in bringing these new changes,” informs Dr Koshia.
Among the other developments, Department of Science and Technology (DST) supported programme for promotion of innovative ecosystem in Gujarat for medical device industry is being implemented by foundation of MSME Clusters with active participation of Gujarat Technical University.
Challenges
Some of the challenges faced by the companies when doing business in Gujarat is the lack of skilled manpower, over dependence on manual processes or lack of automation, high cost of power, increasing cost of manpower and technology etc.
The Government of Gujarat has been facilitating the growth of medical device industry sector through initiation of various policies in order to provide infrastructure, skilled manpower as well as favourable labour laws.
However Pandya opines that the industry needs to move up in the value chain by both technology upgradation as well as diversification. He feels that while regulatory reforms are under progress, the industry can look at the global quality standards in order to be acceptable in the international markets.
Giving suggestions to the government to tackle those issues Pandya states, “The changing regulatory reforms requires substantial investments by the industry for upgradations requiring support from the Government by way of easy and subsidised financial resources. The industry also needs support for manpower training and skill development.”
What next?
Pandya informs that a large number of micro and small scale units need to understand changing market trends and be competent to manage the distribution channels directly instead of depending on others. This in turn will help them in increasing their margins which would help them to generate surplus required for technology up gradation and modernisation.
Further he added that innovations both in production processes as well as marketing will help in a big way in boosting the business.