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The torch-bearer of Indian pharma industry
Our Bureau , Mumbai | Thursday, August 4, 2011, 08:00 Hrs  [IST]

Maharashtra , which had played a significant role in the pharmaceutical stratosphere of India  still continues to hold its sway contributing about 32 per cent  of   the Indian market.

The state  is home to 347 bulk drug units, about 693 formulation units and various other manufacturing units such as 17 large volume parenteral units , nine  vaccine units, 1931 loan licensees and about 1200 ayurvedic and cosmetics units.

The state also has 171 units that are approved as per WHO – GMP guidelines and 10 units approved by US FDA. The state is the leading producer of vaccines in the country. It has major pharma clusters in Pune, Nasik, Aurangabad, Mumbai and Navi Mumbai. The state is also home to a number of SEZs  such as SEZ at Navi Mumbai , Ajanta Projects  and Wockhardt at Aurangabad, a dedicated SEZ at Nanded, Serum Bio Pharma Park at Pune etc. A majority of the top 10 pharma companies in the country are based in the state.

The drug units in the state continues to dominate the Indian pharmaceutical scenario with major investments in new facilities, research & development, tie-ups with international players and bare -knuckled aggression  into highly regulated markets like US, EU and Japan. These companies were also able to launch several new cost -effective products in emerging markets. Many of the pharma players have set up  subsidiaries in international market to tap the upcoming opportunities from expiration of several patents in the near future. Having several  US FDA approved plants, higher number of approvals of ANDAs and DMFs, the state was able to gain more  and more market share.

Though  the state  is doing a lot, it needs to move at a much faster pace because  other states are catching up with Maharashtra. States such as Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu have, emerged as alternate pharma hubs.

Moreover due to  the financial benefits extended by the union government for manufacturers in  Himachal Pradesh, Uttaranchal and Sikkim, a fair degree of industrialisation took place in these states also. Tax and excise exemptions offered by these industrially backward states like Himachal Pradesh, Uttarakhand, Baddi, Jammu and Kashmir etc. saw a  large number of industries shifting their manufacturing facilities to those states.

 The supply and logistics infrastructure in these states also slowly matured and now are comparable to that in Maharashtra. Also, the southern states of Andhra Pradesh and Tamil Nadu have seen significant industrialisation, as far as the pharma sector is concerned. All capacity expansions have actually happened in these states or within SEZs.

 Despite some industrial movement out of Maharashtra, the state still provides a very conducive industrial as well as financial climate. Hence with the support of the state government, Maharashtra can  reclaim its premier role as the torch bearer for the Indian pharma sector.

Says Daara Patel Secy General IDMA “It is now necessary that the Maharashtra government takes more proactive steps to further the growth of this industry by allowing for better incentives, tax sops and investment in talent creation. This will be crucial in order for the industry to sustain its current growth momentum to make sure that the bulk of Indian pharma activity remains within Maharashtra”.

The steps that must be urgently taken according to him are infrastructure  upgradation,creation of Pharma Special Economic Zones (PSEZs), encourage pharma industry to set up manufacturing plants in the state,  tax incentives and subsidies to the pharma industry,.encouraging more pharma units to set up CETPs, encouraging more cluster-based projects by providing state-of-the-art common facilities, allowing for expansion of existing units to meet growing domestic & international demands, encouraging setting up of new units to make products for international markets on

contract basis, setting  up new R&D units to undertake research and development work for domestic and international companies and encouraging industry-academic interaction and close co-ordination.

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