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TN and Pondicherry emerging outsourcing destinations for contract manufacturing for entire India

Peethaambaran Kunnathoor, Chennai
Thursday, September 16, 2021, 08:00 Hrs  [IST]

Tamil Nadu and Pondicherry are fast emerging as outsourcing destinations for pharmaceutical formulations and APIs of pharma majors across the country and of hundreds of marketing companies from in and out of the states.

More than 400 manufacturing units complying with cGMP regulations are operating in these two states catering manufacturing services to multiple companies of marketers and manufacturers.

All over Tamil Nadu, about 500 marketing companies are in tie-up with manufacturers for their outsourcing business. Similarly, the members of the marketers' association (CIPMMA) are hired by contract manufacturers in Pondicherry where the pharma industry is growing stronger than ever before. With the emergence of online business, contract manufacturing is gaining momentum in Tamil Nadu and also in the Union territory of Pondicherry.

“A lot of new entrepreneurs of marketing companies are emerging in Tamil Nadu unlike what is the situation in other states. On one side, our state is becoming a manufacturing hub for pharmaceutical contract manufacturers and on the other side it produces a large number of new entrepreneurs.  The case of CIPMMA is an example. It is an association of small and medium marketing companies who are selling medicines which are manufactured in the plants in Tamil Nadu and Pondicherry. No other state in India has produced this much number of pharma entrepreneurs whose businesses are scaling up day by day,” says J Jayaseelan, chairman of the Tamil Nadu branch of the IDMA.

Commenting on the growth of the pharma sector, he said a host of new generation entrepreneurs from Tamil Nadu have found place among the top 200 pharmaceutical companies in India. To specify some names, he said, Ordain Healthcare, Delvin Pharma, Icon Lab, Icarus, Linux, MMC Healthcare, Curatio Healthcare India, Shield Healthcare etc are examples.

But the major players in Tamil Nadu who are ranked within 75 top companies in the country include Apex Lab, Fourrts India Laboratories, Tablets India, TTK Healthcare etc.

Among the major exporters, the companies include Medopharm, Caplin Point Laboratories, Softgel Healthcare, Indus Lifesciences, Global Pharma, SaimirraInnopharm, Stedman Pharmaceuticals and Kniss Laboratories. Madras Pharmaceuticals and Swiss Garnier are among the top 10 contract manufacturing companies in the country. Other leading manufacturers include Safetab Lifesciences in Pondicherry and Dr. Milton's Lab, Chennai.

In addition to this, manufacturing facilities of two major pharma MNCs, PAR Pharma and Strides Pharma Science, are also working in the city, and API industries include Shasun Pharmaceuticals, Orchid Pharma, Venkata Narayana Active Ingredients Ltd, Nuray Chemicals, Malladi Drugs and Pharmaceuticals, Strides Lab and Panvo Organics Pvt Ltd.

The clinical research organizations, in support of the pharma companies, operating in Chennai are Azidus Laboratory, Quest Lifesciences, Scitus Pharma Services and Micro Therapeutic Research Lab.

Talking about the Covid impact on the pharma sector, Jayaseelan said the revenue loss occurred mainly to the marketing companies as most of the doctors were not practicing during the severe pandemic and did not want to meet the marketing representatives. Although they suffered a big revenue loss, the companies had to pay salaries to their employees without getting any order from them.

He said Tamil Nadu is a promising destination for the pharma industry due to the increasing number of pharma professionals and IT back up.


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