Gujarat claims many firsts in Indian pharmaceutical sector. With a major share of more than 45 per cent of the drugs and pharmaceutical produces made in the country, this western state leads the rapidly growing pharma industry.
Gujarat is the land that witnessed birth pangs of India's indigenous pharmaceutical sector. Alembic Ltd, one of the oldest Indian firms, took its birth at Baroda (Vadodara) in one of the industry's formative years.
Today, after many seasons later, Gujarat Pharma triumphs of being home for nearly 3000 drug making units. This includes the country's top players such as Zydus Cadila, Torrent Pharma, Dishman Pharma etc. and MNCs like Abbott and sanofi-aventis, as well as a large number of allied industries.
Not merely that such a large section of the industry and allied companies co-exist amicably in the state, but a good lot of them are in their pink of health too. Evidently, Gujarat firms have been following a growth path which is almost consistent.
A recent study conducted by Pharmabiz on Alembic Ltd, Cadila Healthcare, Dishman Pharmaceuticals, Themis Medicare and Torrent Pharma revealed that these companies achieved strong performance during the first nine months of the current year. Their aggregate net sales grew by 22 per cent to Rs 2239.56 crore from Rs 1836.12 crore in the corresponding period of last year. The net profit went up sharply by 34.1 per cent to Rs 315.53 crore from Rs 235.33 crore.
Operating in cardiovascular, gastrointestinal, women's healthcare, respiratory, pain management and anti-infectives segments, Gujarat companies target regulated markets for faster growth. Zydus Cadila has set up operations in US, France, Brazil and South Africa. Torrent has six subsidiaries outside India including a wholly owned subsidiary Torrent Australasia Pty. Ltd in Australia incorporated during December 2005. Dishman Pharma, which has raised $50 million through issue of FCCBs last year set up a subsidiary Dishman Switzerland Ltd.
Contributing nearly 16 per cent of the country's total pharma exports, Gujarat Pharma occupies a pride of place in exports too. Leading companies have improved their export earnings over the years. Though Alembic and Cadila suffered some setback on export front last year, Torrent and Dishman improved export earnings. Eyeing the lucrative markets, they have been increasing R&D spends also.
Gjuarat is also the state that endorsed itself as the torch-bearer of drug regulation and administration. Gujarat's Food & Drugs Administration (FDA) is the first state regulator to implement Schedule M norms for good manufacturing practices. Its strict vigil and uncompromising stand have made the Gujarat to soon become one among the first states to have all pharma manufacturing facilities complied with Good Manufacturing Practices (GMP).
Currently, there are around 23,500 registered pharmacy professionals with Gujarat Pharmacy Council. Of this, more than 12,000 are practising pharmacists.
Traditionally known for pro-active and industry-friendly, the government of Gujarat is in the forefront of shaping policies conducive for the industry's unbridled growth.
As part of its plans to give a boost to the much-promising biotech sector, the government of Gujarat have drawn up a plan recently, to set up a biotechnology park at Savli Industrial Estate at Vadodara. The plan will be implemented through its nodal agencies: Gujarat State Biotechnology Mission [GSBTM] and Gujarat Industrial Development Corporation (GIDC).
The Gujarat Pharma Techno Park, coming up at Changodar near Ahmedabad, is likely to take off within the next six months to one year. The IDMA Gujarat State Board, has entrusted the Infrastructure Leasing and Financial Services (IL & FS) to further develop the park, informed Deepak Padia, Chairman of the Gujarat Pharma Techno Park.
Aggressive efforts on the part of the state government have played an important role in driving the industry where it is today. No doubt. However, as an industry that constantly strives to grow in every possible level, Gujarat Pharma has got own cup of woes as well.
For instance, the Union Finance ministry's recent decision not to grant some of the incentives for the pharmaceutical manufacturing industry has pushed more than 2000 contract manufacturing and loan license pharma units in Gujarat to the verge of closure.
The state has about 1750 loan-licensed units and most of them have either curtailed production drastically or are in the process of downing shutters. According to Dr R S Joshi, executive secretary, Indian Drugs Manufacturers Association - Gujarat State Board (IDMA- GSB), most of these units are now seriously thinking of migrating to the excise free zones of HP, Uttranchal and J&K or to close down forever.