HomeIndustry NewsPositioning AP as India’s leading Pharma Hub

Positioning AP as India’s leading Pharma Hub

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Andhra Pradesh’s pharma industry has been one of the fastest-evolving sectors over the past two decades.

The combined state of Andhra Pradesh, the state used to be known as the Bulk drug capital of India. What is encouraging is that even post-bifurcation AP claims to still hold onto that tag.

Most of the major companies in the pharmaceutical industry today have their presence/units in Andhra Pradesh.

Addressing the recently held AP GIS 2023, the Founder and CEO of Laurus Labs Mr Satyanarayana Chava said that Andhra Pradesh has some of the largest API factories in the world such as Hetero drugs, Laurus labs, Divis, Aurobindo, Dr Reddy’s etc.

‘The state will do very well in the pharma sector’ said Mr Chava lauding the state government for their proactive policies and business-friendly atmosphere.

In fact, Andhra Pradesh had just in last August got a huge boost when the government of India’s Department of Pharmaceuticals agreed to extend $125m in grants to the proposed Bulk Drug Park (producing APIs) in East Godavari district.

As per certain industry estimates Andhra Pradesh makes API for 26 innovator or biosimilar drugs sold in the US and EU while Telangana makes the API for 37.

Stating that the 60-billion-dollar pharma market in India was able to produce indigenous vaccines during the pandemic, Mr. Murali Krishna, Director, of Pharmexcil, said, “From an import-dependent nation to an export surplus nation, we have come a long way to now become ‘pharmacy of the world’. 

By manufacturing affordable quality drugs, we have also expanded our footprints in other countries.”

Industry leaders state that AP has been a key player in the pharma industry as it has a good mix of entrepreneurship and expertise, that has kept the state ahead of the rest.

Addressing challenges

Like all other industries, the pharma industry has its own challenges. The Pharma sector has become highly complex and competitive, globally as well as locally. The purely generic market has become very aggressive. The pharmaceutical business has shifted from standard chemistry to several innovative ways of manufacturing.

Over-dependency on China for raw materials which was very simple and easy 25 years ago, has become a threat now.

Indian industries are said to have lost significant competitive advantage due to inconsistent raw material supplies as well as rising costs from China. However, many Indian pharma industries are now strengthening their supply chain within India itself.

“Another challenge is to get the right talent for a more knowledge-based market, which is the need of the hour. The education system is unfortunately not fully aligned with the growing needs of the pharma industry,” stated Mr. Anant Barbadikar, President- Operations, PharmaZell.

Pharma industries are also closely pursuing the global ambition and mission of carbon neutrality and are showing great maturity to meet the challenges in today’s world.

Anant further added that maintaining the highest environmental standards will give industries the upper hand in the near future.

Similarly building a robust supply chain, making risk-based product selection, and using of right technology are still the key parameters for the success of the Pharma Industry. Focussing on these parameters will determine the sustainable growth of the pharma sector.

Pharma industries are becoming innovative, environment-friendly, and knowledge-based said Mr Anant. We are now marching ahead toward the Biosimulation sector as rapid strides have been made by the countries said Mr Murali.


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