When it comes to identifying the pharma hub of the country, Gujarat is the first name that comes into the minds of the public, having become a trend setter for the overall healthcare industry which includes, pharma, hospitals, medical device industry, ASU sector etc to name a few.
With the focused government-led healthcare initiatives being spearheaded in the state, leading corporate groups from different sectors are keen to mark their presence in Gujarat making it a prominent industrial hub. Most of the companies have an easy access into the state for business purposes because of the relative ease of clearances etc. along with the great investment opportunities that the government has been providing under the Vibrant Gujarat Summit.
According to Dr H G Koshia, commissioner, Gujarat Food & Drugs Control Administration (FDCA), the state's pharma industry and all its facets will continue to be the leaders. The industry is in the advanced stage of modernisation in terms of the technology profile and is gearing up for embarking upon the international business to regulatory countries in a big way.
Opportunities galore
Apart from being home to numerous domestic players, Gujarat is also home to a number of global players as well, who are all set to capture upcoming opportunities and gain entry into newer emerging markets. Some of the top global pharma companies who have set up their base in the recent times are Israel- based Teva along with Procter & Gamble (P&G) investing around Rs.500 crore for setting up its Teva & P&G manufacturing unit in the state. Similarly two US -based companies have also shown interest, one of which is Apicore Pharmaceuticals which is reported to be investing Rs.120 crore for expansion of its already existent plant.
Among the domestic companies, the Maharashtra -based Ajanta Pharmaceuticals is expected to sign two MoUs with the government, first worth Rs.225 crores while the second MoU is estimated to be around Rs.175 crore both for the expansion of its plants in the state brining the companies total investment to Rs.400 crore. Glenmark is expected to invest Rs.145 crore while Seva Health, Meril Health, Emcure Healthcare are expected to invest Rs.150 crore each. One of the highlights of this year is the foray of the Indian multinational ACG into the state with the investment of Rs.350 crore. These investments are expected to generate about 30, 000 plus job opportunities in the state and has given a huge boost to the ongoing efforts of the government.
Advantage healthcare
India is perceived as one of the fastest growing medical tourism destination in the world. In the recent years, government support, low cost, improved healthcare infrastructure, and its rich cultural heritage, have taken the Indian medical tourism to newer heights. The Indian healthcare industry, which comprises hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment, has seen a huge growth spurt in the recent times.
And in all this Gujarat has taken a prime spot as being one of the ideal healthcare providers in the country . The advantage of cost competitiveness further contribute to the factors responsible for making Gujarat a preferred destination for medical tourists.
According to Zahabiya Khorakiwala, managing director, Wockhardt Hospitals, the available medical infrastructure and easily accessible healthcare facilities have remarkably improved the health index of the population over the last few years in Gujarat. Today the state-of-the-art tertiary care corporate hospitals are getting established in major as well as two and three tier cities in a big way.
“We should give credit for this rapid development to the changing mindset of the patients as well those who have become quality conscious and more aware of their healthcare needs. Besides, growing per capita income and want of specialised and sophisticated healthcare has given further impetus to this healthcare boom,” she adds.
From dominance of small nursing homes, 25-years back, today Gujarat has made a rapid progression to the state-of-the-art tertiary care corporate hospitals. Experts give credit for this rapid development to the changing mindset of the patients who have become quality conscious and more aware of their healthcare needs. Currently, Gujarat healthcare market is standing on a verge of great take off. Medical tourism, enhancement of existing medical infrastructure, involvement of state Government in improving other facilities all have significantly boosted healthcare market in Gujarat.
According to Amol Naikawadi, joint managing director, Indus Health Plus, Gujarat, being an economically stable, industrially and agriculturally developed state, has become one of the most favoured medical destinations.
“It would not be an exaggeration to say that the healthcare sector in Gujarat has come in the limelight by adopting global practices to deliver seamless patient care of quality. Gujarat's medical expertise and the strength of its facilities are arguably better than those of some of the South - East Asian Nations and Gujarat hospitals are trying to do a lot more hard selling abroad. This can be achieved by measures such as creating centre of excellence in respective fields, developing a network, customising packages and providing a stamp of quality through accreditation,” Naikawadi pointed out.
Medical device sector
One of the industries which have a huge growth potential for growth in the state is the medical devices sector. Medical products have developed very well in the last few decades. With advances in the medical sector, medical packaging is also expected to change considerably by 2020. It is estimated that the packaging market for disposable medical devices will reach more than US$ 4.0 billion by 2016. With continuing growth of medical device industry, the need for sterilizable packaging, barrier packaging and other packaging requirements for medical/surgical products, is also increasing.
To address this issue , a select group of 20 small scale medical device manufactures from Gujarat have embarked on a unique project to set up a common medical device manufacturing unit to make raw materials and components that are essential for developing medical devices. This endeavour is initiated with an investment of around Rs.15 crore, to address the shortage of availability of high quality raw materials and components in the market which is a key requirement for manufacturing export quality medical devices.
The small scale medical device manufactures have already constituted a Special Purpose Vehicle (SPV) to serve as a common manufacturing unit to these manufacturers so as to meet their demands as per their requirements. They are at present scouting for an appropriate location which is strategically located in and around Ahmedabad for greater accessibility and mobility.
D L Pandya, an expert from the medical device industry, said, “Such a progressive approach is highly commendable especially since it is being initiated by the small scale manufacturers in the state. This clearly points out that even the medical device industry is undergoing a metamorphosis to meet the increasing standards. This manufacturing facility will primarily function to address the needs of the member companies only. However, Pandya informed that in case of surplus production or demand they may provide their services to other manufacturers as well.
Pandya who is also the CEO of Medical Plastics Data Service also pointed out that for the good of the industry , the medical device industry wants the government to come out with an interim regulatory mechanism in the form of a guidance document as doubt looms over the introduction of Drugs, Cosmetics and Medical Devise Bill in parliament in the winter session. This demand comes in the wake of delay in finalising appropriate regulatory guidelines for the medical device sector leading to confusion and holding up of expansion plans of the companies.
Currently, medical device is considered as a drug under the Drugs & Cosmetics Act. However, considering the different dynamics of the industry the CDSCO had recently drafted the Drugs Cosmetics and Medical Devise Bill specifically for the medical device industry. Once this bill is passed by Parliament, the D&C Act will be named as Drugs, Cosmetics and Medical Devices Act.
However the industry claims that the existing draft bill for the medical devices sector is not as per the requirement of the industry and needs to be modified before it is presented in the parliament. Experts claim that it is not feasible to accept the bill in its current form especially since it is prepared in the lines of the regulatory requirements of the pharma industry which is very different from the medical devices sector.
Pandya stressed that since medical devices are an important part of a patients life and are considered as critical life saving products just like drugs as they are implanted directly into the human body for critical care. Implanting low quality or defective device can endanger the life of the patient and that necessitates the need for separate minimum standards for these products that are different from the regulatory standards prescribed for the pharma industry. He pointed out that to address these uncertainty, industry need a set of clear cut guidelines to regulate this industry as per the required standards to help propel the growth of this industry in the absence of a separate law.
Vibrancy of Gujarat
The Vibrant Gujarat Summit, a biennial event organised by the Gujarat government to bring together the business leaders, investors, corporations, though leaders and policy- makers under same roof, is seen as one of the major factor attracting investors to Gujarat like never before. According to Dr Koshia, the VB summit over the years has played an important role in attracting and retaining investors and investment opportunities to the state, further helping the state government to set greater goals and visions to place Gujarat in the world map.
The summit had been a resounding success in the past, attracting several companies from around the globe to mark their presence in Gujarat, which is today considered as one of the most industrialised state in India. Every year, there has been a steady increase in the interest among the industry members to do business within the state. Sources inform that compared to the 2009 and 2011 edition there have been a steep rise in the performance and acceptability of this event at the global level after the conclusion of the 2013 edition, wherein the government was successful in signing a higher number of MoU's than ever.
Dr Koshia informed that as a regulator he feels proud about the reputation and status that Gujarat enjoys not only in India but across the globe for being a facilitator of trade and business development.