The biotech and pharma industry sectors in Gujarat which has witnessed vast developments over the years got a booster shot with the 'Vibrant Gujarat - Global Investors' Summit 2009'. According to some experts, in the near future, Gujarat will be known as the hub of pharmaceutical activities the world over.
The summit which was a roaring success saw investments in the biotech and pharmaceutical sectors to the tune of Rs 2,508 crore and Rs 3,250 crore respectively giving a further phillip to these sectors.
Compared to the last Vibrant Gujarat Summit held in 2007, Vibrant Gujarat Summit in 2009 witnessed a 10-fold increase in the investment to be made in the pharma industry.
In the biotech sector, about 30 MoUs were signed by 25 companies. These include two international companies, six companies outside Gujarat while 17 are Gujarat-based companies. In pharma sector, 27 MoUs were signed by 25 companies including four international companies, four companies are outside Gujarat while 17 are Gujarat-based companies. The projects include contract manufacturing, bulk drug manufacture, formulations, drug delivery systems. The investment is expected to generate employment to around 14,000 skilled people.
Japan External Trade Organization (JETRO) was designated as the country partner for the summit. This was the first time when India received international country partnership for such a summit. The partnership with Japan will also increase involvement of Japan in Gujarat in the pharmaceutical, biotechnology and active pharmaceutical ingredients (API) manufacturing fields as well.
The Indian Drug Manufacturers' Association (IDMA) sees an excellent future for these sectors in Gujarat. Because of IDMA more than 71 pharma companies have already planned to set up operations in Gujarat and due to this MNC pharma companies will also be attracted for contract manufacture.
IDMA jointly with Gujarat State Board (GSB) has started many additional initiatives for API and formulations. Both have jointly started news bulletins for API niche companies. IDMA -GSB has started a daily newsletter. IDMA-GSB has started to contact all government authorities for representation of industry requirements. IDMA -GSB is also planning to organise exhibitions for the API and formulation industry.
IDMA is also going to work strongly for the promotion of the pharma small scale Industry (SSI) to represent their problems and demand benefits from the government.
At the same time the state government is also undertaking various measures for encouraging pharma ventures. Government is also going to announce a pharma-oriented Gujarat Industrial Development Corporation (GIDC) in Gujarat soon and for that, it has already sectioned five pharma Special Economic Zones (SEZs)
The government has invited global pharma companies by bringing out different programmes. The government is also putting in efforts to promote low budget and start up companies. The Drug Advisory Board, new website of the Gujarat Food and Drug Control department is under process and it will be the first website to have the online application of Food and Drug Administration (FDA) licensing system in India.
The government has also approved various biotechnology parks and more than 70 pharmacy colleges are to receive final approval. All these facts will boost the pharma industry in Gujarat.
Though Gujarat is also home to some of the country's leading pharmaceutical companies, the transition from core pharmaceuticals to biopharma and biotechnology has been somewhat slower than in other leading Indian states like Maharashtra, Karnataka and Andhra Pradesh. Hence the state government is gearing up to capture the biotechnology wave. Gujarat has set up a special agency, the Gujarat State Biotechnology Mission (GSBTM) to lead the state into the frontiers of biotechnology in a systematic way. The state is very bullish on biotechnology and keen on nurturing the home grown talent.
The Gujarat chief minister, Narendra Modi who is wooing investors from around the world in various sectors has given special emphasis on biotech sector. A number of innovative initiatives have been planned by the state to become a leader in biotechnology sector in a very short time. The chief minister's personal attention to the biotech sector has won plaudits from industry leaders and technocrats.
According to Narendra Modi who has coined the term BT+BT = BT (Bharat Today + Biotechnology =Bharat Tomorrow), Gujarat has been the one of biggest contributors to Bharat Tomorrow. The lead entrepreneurs in biotechnology from Gujarat have already made their mark nationally and internationally. Gujarat has been amongst the first few to adopt the agro-biotechnology and emerge as a major cotton producer. Now the lead taken by Gujarat is being replicated by other states, he says.
According to him the biotechnology industry is going to make tremendous contribution towards better health care products, more nutritious food and cleaner environment. In future the emphasis would be on producing life saving biotech drugs for which patents have already expired. Such drugs though are in abundance are costly. Gujarat which has a history of producing drugs at affordable prices would take lead in this area also. Gujarat, with its favourable geographic location, diverse climatic conditions, rich marine and microbial biodiversity, would be making drugs and therapeutic products at affordable prices. Better yielding groundnut, value -added products from castor, biotechnology based vaccine, higher availability of dairy based products, trendsetting technologies and practices in medical and solid waste treatment are few of the areas in which Gujarat expects to contribute to Bharat Tomorrow, Modi says
Gujarat has been in the forefront of biotechnology for many years. Alembic was established here long back in early 1970s. The biggest diagnostic company of the country-SPAN, the biggest vaccine producer and supplier, Chiron, the upcoming company coming up with recombinant products-INTAS, the company working in enzymes-Concord are some of the reputed companies in Gujarat. With more than 45-50 BT companies and turnover of around Rs 450-500 crore, Gujarat would rank among top five states of the country. Gujarat is determined to build further from this base, says Modi.
The state has taken definite pro-active actions on organizational, planning and implementation front for bio -technology. The Gujarat State Biotechnology Mission (GSBTM) takes care of the organizational part. Developments of long-term vision, biotechnology development strategy, sector specific strategic road maps, are crucial actions from the planning angle. Development of infrastructure, developing skilled human resources, supporting biotechnology research, encouraging biotech entrepreneurship and business are the main priorities from the implementation perspective. Sector specific BT Parks, agro-BT park, marine BT park, specific facilities like marine resources centre, dedicated value- addition training programmes, both in universities and in collaboration with industries, focus on teachers' training, modern infrastructure for biotech research in universities, establishment of biotechnology venture fund, are few of the pro-active actions of the state government. In coming five years, the state government plans to allocate nearly Rs 200 crore for biotechnology.
Having a very strong pharma base, almost 68 percent of biotechnology revenue of the state comes from the pharma biotech or healthcare biotech. Moreover existing companies are diversifying into new coming sectors.
According to some experts, to keep the momentum going and maintaining growth, the state government on the lines of Vibrant Gujarat Summit, should actively think of organizing dedicated events on biotechnology sector such as hosting international meetings, seminars, workshops and invite global biopharmaceutical companies to Gujarat.