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Driven by robust infrastructure, skilled workforce, government initiatives, growing global demand, and investment opportunities, Andhra Pradesh and Telangana are poised to make significant contributions to the life sciences sector of India.
Both states are a stronghold for pharma-biotech-medical devices manufacture and a mainstay for bulk drugs and biosimilars. The states have established industrial parks and special economic zones (SEZs) specifically for pharmaceuticals, providing the necessary infrastructure for manufacturing and research.
The presence of numerous educational institutions and universities offering pharmaceutical and biotechnology courses ensures a steady supply of skilled professionals. Supportive government policies, including incentives for pharmaceutical companies, investment in R&D, and streamlined regulatory processes, are encouraging growth in the sector.
Further, the regions have access to essential raw materials and active pharmaceutical ingredients (APIs), which reduces logistics costs and enhances production efficiency. The increasing global demand for generic drugs and the rise of biopharmaceuticals provide a substantial market opportunity for companies in Andhra Pradesh and Telangana.
Both states are attracting investments from domestic and international pharmaceutical firms, leading to new projects and expansions. There is a growing emphasis on innovation, with many companies investing in R&D to develop new drugs and therapies. Besides collaborations between academia, research institutions, and industry players are fostering innovation and driving growth in the pharmaceutical landscape.
These factors position Andhra Pradesh and Telangana as emerging leaders in the pharmaceutical sector, contributing to the overall economic growth of the region, said AP Minister for Education, Information Technology (IT) and Electronics, Nara Lokesh Telangana Industries and IT Minister D. Sridhar Babu.
The states are home to more than 250 APIs/bulk drug units of which 38 WHO approved 20 USFDA approved. There are four pharmaceuticals’ clusters in Vishakhapatnam, Srikakulam Nellore, Vijayanagaram. Primary focus of AP’s pharma industry has been on bulk drugs exploring collaborations across product classes – medical device technology, biosimilars, gene therapy, and specialty drugs to usher-in the next phase of growth.
AP making huge strides
Andhra Pradesh is at the helm of the pharma industry in India and is the largest exporter of pharma products amongst all the states in the country. The state houses the Jawaharlal Nehru Pharma City (JNPC), Vishakhapatnam has Biocon, Orchid Chemicals & Drugs, Shasun Chemicals & Drugs, Mylan Laboratories, GVK, Hetero Drugs, Vijayasri Organics, etc have received these investments for companies to set up bases.
At the APSEZ Pydibhimavaram, Srikakulam have investments from Laurus Labs, Escientia Advanced Sciences, Vasudha Pharma, Phalanx Chemicals, Lee Pharma, Beatus Laboratories, etc. APSEZ, Atchutapuram, Vishakapatnam houses Dr. Reddy Labs, Aurobindo Pharma, Virchow Laboratories, Andhra Organics, Green Tech Labs, Synpure Labs, etc. At APSEZ Naidupeta, Nellore have companies including Aurobindo Pharma, Shimoga Life Sciences, Anvitha Lifecare, Gelcaps Industries, Chemsynth Labs, United Alacrity etc.
There are also a slew of schemes like the AP Industrial Policy 2020-23 and the Special Package Incentives for units in Bulk Drug Park which have reinstated the development of lifesciences sector.
Another is the micro & small projects which attract reimbursement of 100 per cent stamp duty, power reimbursement of one rupee per unit for five years, reimbursement of 100 per cent net State Goods and Services Tax (SGST) for five years, 15 per cent investment subsidy up to Rs.20 lakhs, interest
subsidy of three per cent for five years.
For the medium, large & mega projects, the government has again offered incentives. The Production Linked Incentive Scheme for Pharmaceuticals (PLI 2.0) and the 100 per cent Foreign Direct Investment (FDI) in the pharmaceutical sector from the government of India allowed under the automatic route has encouraged greenfield pharmaceutical projects.
The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. One of the main objectives of the scheme is to create global champions out of India who have the potential to grow in size and scale using advanced technology and thereby penetrate the global value chains.
The proposed common infrastructure for bulk drug park has been Central Effluent Treatment Plant (S) (CETP), solid waste management, storm water drains network, common solvent storage system, solvent recovery and distillation plant, common cooling system and distribution network, Advanced Laboratory Testing Centre and Centre of Excellence.
The healthcare and public health initiatives in Andhra Pradesh have schemes such as the YSR Kanti Velugu Programme to provide free eye care, tests, surgeries etc in which Rs 560 crore is allocated for six phases over three years, benefiting 5.4 crore people. In addition, Rs 200 crore was allocated to medical colleges with Rs 1,600 crore dedicated for infrastructure development in hospitals and medical buildings.
There are currently 25 medical colleges of which 10 are government institutions and 15 private institutions. Besides, 1145 Primary Health Centres, 196 Community Health Centres, 8 Urban Health Centres, 243 e-Urban Primary Health Centres. Also, Rs 93 crore was budgeted for improvement of Palasa Kidney Research Center and State Cancer Institute.
The state launched 1,088 new ambulances under 108 and 104 services to address emergency care. Centre of Excellence with Johns Hopkins University, Vizag, are also set up, according to the government information in the public domain.
There is considerable focus on pharma industry on recycling and recovery of industrial waste to address environmental and climate crisis. Typically, pharma waste is water which is recycled. Plastic, paper and chemicals waste are reduced or recycled. To this end, the Hyderabad-based Re Sustainability a KKR-backed company engaged in waste management of hazardous, municipal, industrial and biomedical is working on eco-efficient solutions. These include autoclaving, incineration and chemical disinfection, takes place with advanced equipment now being manufactured in India.
Masood Mallick, CEO, Re Sustainability, stated, “We have dealt with a large number of these equipment and had a learning curve for the last 30 years. A lot of modifications for improvements have happened, especially on automation and sensor control to reduce manual dependence and allowing a greater degree of confidence in
performance.”
There is implementation of artificial intelligence and deep tech. Our first robotic enabled biomedical waste facility where the waste handling is being is being handled through a robotic waste picker is all ready and will be implemented soon in Bengaluru. One of the technologies India needs is microwave as a disinfection technology because it is faster. This is an in-house technology for which currently the R&D is on. We actually welcome more start-ups, because we think that this space is needs innovation, said Mallick.
Dwelling on the current biomedical water guidelines in India, Re Sustainability CEO said that while it is fairly complete yet there is a need to take precaution, even if there are no standards in the category of domestic hazardous waste, which includes medical waste generated at homes.
There is definitely a need to update regulations and Re Sustainability, present across India and globally, would be recommending to the government for one common law across municipal, industry and biomedical waste. We believe that that that biomedical waste rules will get amended and compliance will improve, said Mallick adding that the company is investing over Rs 200 crores to expand its capacities across the country with global expansions too.
Going by the indispensability of biomedical, hazardous and industry waste management in India, there are limited vocational programs around this science of environment and sustainability. Currently, Re Sustainability has a strength of 20,000 workforce. But going by the pace of expansion plans, there is a need to partner with universities to start programs to develop human capital qualified and trained across all forms of waste management, recycling, resource recovery, energy recovery, sustainability disciplines. We already have standard operating procedures to create the curriculum and the sites for the training can happen in partnership with universities, said Mallick.
Telangana nurtures innovation
Telangana nurtures innovation, manufacturing excellence, and economic growth while promoting sustainable development and global competitiveness for Indian pharma. Telangana’s initiatives for the pharmaceutical sector have positioned it as a transformative hub, attracting investments from companies based in Karnataka and elsewhere. Biocon, Syngene and Shilpa Medicare have set up large facilities to capitalize on the capability of this state.
From the world’s largest integrated cluster for pharmaceutical industries with thrust on R&D and manufacturing, Hyderabad Pharma City has been recognized as National Investment and Manufacturing Zone (NIMZ) by the Union government.
Telangana provides a conducive environment for pharma investments. Scores of pharmacies and technical institutes of repute including NIPER are here. Telangana is an ideal destination to manage the complexity of supply chain of medicines with sea and airports. Union ministry of commerce has established Pharmexcil office in Hyderabad, said a pharma consultant.
Telangana has been posing stiff competition and garnering a large share of investments in pharma. The key factors for most investment decisions are availability of land, or preferably serviced land for setting up operations and access to a pool of scientific and technically qualified human resources, he added.
Hyderabad leads in bulk drugs manufacturing
Hyderabad has been instrumental in the development and manufacturing of bulk drugs, one-of a kind wearable therapy device for drug-free management of migraine from Dr. Reddy’s Labs, Bharat Biotech’s Covaxin for Covid prevention, and Biological E’s Corbevax vaccine, which is India’s first indigenously developed Covid-19 vaccine that is based on protein sub-unit platform.
From Aurobindo Pharma, to Divi’s Laboratories, Laurus and Lonza, to name a few, the developments indicate a future pharma pathway. Besides pharma parks coming up in Mucherla near Hyderabad, proposed Hyderabad Pharma City in Kandukur, Yacharam and Kadthal Mandals of Ranga Reddy district in Telangana signifies the city’s importance in the pharmaceutical domain.
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