Pharma companies still prefer Hyderabad over coastal Seemandhra
Hyderabad :Despite the coastal region being an ideal place for pharma and bulk drug industries, the players in the sector see Hyderabad and its surroundings as a more convenient place for their expansion plans.
Given the established connectivity, work culture and adequate availability of workforce, including technocrats and scientists, besides good medical facilities and living conditions, the Bulk Drug Manufacturer Association (BDMA) prefers Hyderabad for expansion.
“Most of our clients are in Japan or Western countries like the United States or other European countries. Hyderabad has a better connectivity. This is lacking in Seemandhra. It might take another 10-15 years for the facilities in to develop in Seemandhra. Moreover, over the years, management of harmful effluents with the help of technology, has led to acceptance by the local people in Hyderabad. This did not happen in Seemandhra since 2006,” says R.K. Agarwal, general secretary of BDMA.
He added, “The workforce, including large number of technocrats, who are a crucial part of the industry, are settled here because of good living conditions.”
With the lifting of the ban imposed on the industry, owing to pollution caused by it, a majority of the drug industry in the state feels that there could at least be a 30 per cent expansion in manufacturing capacity around Hyderabad.
“Before the bifurcation process begun, over 40 areas were identified on the city outskirts for expansion of industry. We hope to see that process begin once the government forms,” said a senior official of Nakoda Chemical Ltd.
“An industrial park on the city outskirts with adequate power supply would only boost the industry in Telangana,” said Shiv Kumar Rungta, senior vice-president, The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
The industry members are soon to meet the chief ministers-in-waiting to give their presentation on proliferation of the industry in both Seemandhra and Telangana.
AP is considered the capital of bulk drug production, accounting for about 30 per cent bulk drug production.
Over 80 per cent of bulk drug and pharma industries are established in and around Hyderabad. Establishments of so many drug units around the city happened due to inception of Indian Drug Pharmaceutical Limited (IDPL), a government-led organisation. Many senior experts who came out of IDPL established their own industries.