From reverse engineering to innovation and discovery, the pharmaceutical industry in Andhra Pradesh over the years has changed its thrust gears to become one of the hottest places in the country for establishing pharmaceutical business, especially the bulk drug industry. During the last some years, the pharma industry in the state has grown by leaps and bounds, thanks to a conducive industrial climate existing in the state. Hyderabad, which accounts for around one third of the country's total bulk drug production, is considered to be the bulk drug capital of the country. A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower.
Major players
Home to three pharmaceutical majors of Dr Reddy's Laboratories, Matrix Laboratories and Aurobindo Pharmaceuticals Ltd, Andhra Pradesh has some distinct advantages for attracting investments in pharmaceutical sector. The state has an established pharmaceutical base starting with IDPL and a strong R&D base with reputed institutions like Indian Institute of Chemical Technology (IICT), the Centre for Cellular and Molecular Biology (CCMB), Centre for DNA Fingerprinting & Diagnostics (CDFD) and National Institute of Nutrition (NIN). It also has a strong academic base with a string of pharma degree colleges and diploma colleges churning out a large number of candidates annually.
Some of the other major pharmaceutical and contract research and manufacturing units in the state are Divi's Lab, Natco Laboratories, Hetero Drugs Ltd, Matrix Laboratories, Biological E Ltd, Suven Pharmaceuticals Ltd, Global Bulk Drugs & Fine Chemicals Ltd, Krebs Biochemicals Ltd, Neuland Laboratories Ltd, SMS Pharmaceuticals Ltd, Virchow Labs Ltd, Sri Krishna Pharmaceuticals Ltd, Sreepathi Pharmaceuticals, Anu's Laboratories Ltd and the GVK Group.
Growth perspective
Along with the Indian pharmaceutical industry, the pharma industry in Andhra Pradesh is also growing rapidly. With an annual growth rate of more than 20 per cent and a slew of proactive measures by the state government to boost the indsustry, Andhra Pradesh is fast emerging as the pharmaceuticals capital of India. The state is internationally well known for its skills in chemical synthesis and process engineering and its speed to market. In value terms, the industry is worth around $ 1 billion and the state will leverage its strong position to emerge as the next global hub of pharmaceuticals. The state exports over $ 500 million of pharma products and has over 2000 pharma companies.
Private-public participation
In its endevour to give a boost to the booming pharmaceutical industry, the Andhra Pradesh government has announced the establishment of a 'Pharma City' near Visakhapatnam with private sector participation. The industrial area at Parawada in Visakhapatnam has been identified for the development of world-class infrastructure facilities. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has acquired 2200 acres of land for this city. The salient features of the City included environmental protective measures, single window clearance and facilities for Indian and global companies to set up their JV/100 per cent manufacturing units.
This project will have common integrated facilities for effluent treatment/ waste handling and disposal with a pipeline running into the deep sea as per the international norms. It will provide the telecommunication infrastructure, assured water and power supply, airport and seaport.
Industrial Parks
The Government will also set up two formulations parks, one close to Hyderabad and the other an Export Processing Zone (EPZ), possibly close to the bulk drugs estate. These parks will be provided with assured power and water supply, good roads and telecommunications facilities. The EPZ will be connected to the Vizag Airport and port by a highway and share the Pharma City air travel infrastructure. A Pharma Development Fund of $ 10 bn is to be created with the contributions from the centre, the state government and the industry.
Realizing the importance of biotechnology, the state government announced its policy for the promotion of biotech units in the State. Based on the industrial analysis of the biotech sector and inputs from the industry experts, research organizations and academic experts, the Andhra Pradesh government is focusing on diagnostics, therapeutics, industrial biotechnology, inputs to the industry (hardware suppliers, instrumentation and chemicals) and agricultural biotechnology. The government wants the private sector to play an active role in developing the biotechnology industry in the state and it would act as a facilitator and a catalyst in the development process.
ICICI Knowledge Park
The State government in collaboration with the Industrial Credit and Investment Corporation of India (ICICI) Limited, has set up a knowledge park near Hyderabad.
The park is a 200-acres facility, providing organizations with ready-to-occupy research and development laboratories. The park also provides infrastructure to small and medium scale enterprises at affordable prices. It will also house a biotech knowledge centre. A biotechnology park is being set up adjacent to the existing ICICI Knowledge Park. This 160-acres park will help small and medium enterprises (SMEs) to set up their manufacturing units.
Genome Valley
The state government has declared an area of 600 square kilometres covering the mandals of Shameerpet, Medchal, Keesra and Uppal mandals in Ranga Reddy district as the Genome Valley in which biotech activities will be encouraged and promoted.Agri Biotech Park at ICRISAT
An area of 200 acres has been earmarked for Agri Biotech Park at ICRISAT campus and a MOU has been signed between the Secretary to Government of Andhra Pradesh (I & C Dept.) and Director General, ICRISAT. A firm called AQUAS has already started functioning for the establishment of the Park.
Marine Biotech Park, Visakhapatnam
Around 218 acres of well-developed land has been allocated for Marine Biotech Park (MBP) in Visakhapatnam. Two firms, Biogenus and Celgen, have already been allotted the required land. Many more companies are showing interest to take up ventures in the Marine Biotech Park.