The Pharmaceutical industry in Gujarat ranks number one in India with a 33% share in

drug manufacturing Pharmaceutical manufacturing is the process of industrial-scale organic synthesis, synthesis of pharmaceutical drugs as part of the pharmaceutical industry. The process of drug manufacturing can be broken down into a series of unit operations, su ...

and 28% share in drug exports. The state has 130

USFDA The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food s ...

certified

facilities. Ahmedabad and

Vadodara Vadodara (), also known as Baroda, is the second largest city in the Indian state of Gujarat. It serves as the administrative headquarters of the Vadodara district and is situated on the banks of the Vishwamitri River, from the state capita ...

are considered as pharmaceutical hubs as there are many big and small pharma companies established in these cities.

Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...

is one of the major states in India and has a significant presence in the

pharmaceutical industry The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients (or self-administered), with the aim to cure them, vaccinate them, or alleviate symptoms. ...

. The state is home to several large pharmaceutical companies: Sun Pharmaceuticals , Cadila Pharmaceuticals,

Torrent Pharmaceuticals Torrent Pharmaceuticals Ltd is an Indian multinational pharmaceutical company, owned by Torrent Group and headquartered in Ahmedabad. It was promoted by U. N. Mehta, initially as Trinity Laboratories Ltd, and was later renamed Torrent Pharmac ...

, Alembic Pharmaceuticals, Intas Pharmaceuticals, Zydus Lifesciences,

Amneal Pharmaceuticals Amneal Pharmaceuticals, Inc. is an American publicly traded generics and specialty pharmaceutical company. The company is headquartered in Bridgewater, New Jersey. History Amneal Pharmaceuticals was founded in 2002 by brothers Chirag and Chi ...

, USV Pharmaceuticals, Baxter Healthcare and Outsuka Pharma more.

Overview

has become a hub for the

, with several established companies such as

, Zydus Lifesciences, Cadila Pharmaceuticals, Alembic Pharmaceuticals, Sun Pharma, Claris, Intas Pharmaceuticals, and Dishman Pharmaceuticals having operations in the state. Gujarat currently has around 5000 drug manufacturing units and contributes 42 percent of India's pharmaceutical turnover and 22 percent of its exports as of 2008. Over 52,000 individuals are employed in Gujarat's pharmaceutical sector, which has experienced a

Compound Annual Growth Rate Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some ele ...

(CAGR) of 54 percent in capital investments over the last three years. Gujarat's

holds a significant position in India, accounting for 40 percent of the country's total pharmaceutical production and 17 percent of its exports. The industry is valued at US$ 5.5 Billion.

History

* 1907: Alembic Pharmaceuticals, one of the oldest pharmaceutical companies in India, was established in

, Gujarat. This was just six years after India's first domestic pharmaceutical unit, Bengal Chemical and Pharmaceutical Works, was set up in

Calcutta Kolkata (, or , ; also known as Calcutta , List of renamed places in India#West Bengal, the official name until 2001) is the Capital city, capital of the Indian States and union territories of India, state of West Bengal, on the eastern ba ...

. During the 1940s and 50s, companies like The Gujarat Pharmaceutical and Chemical Works, Sarabhai Chemicals, Atul Products Ltd, Allied and Cadila Laboratories were established. * 1947: The Drugs Laboratory in Vadodara was established, followed by LM College of Pharmacy. * 1989: The B.V. Patel Education Trust, Ahmedabad and Gujarat Branch of Indian Pharmaceutical Association (IPA) established the B.V. Patel Pharmaceutical Education and Research Development (PERD) Centre in Ahmedabad. Over the years, the pharmaceutical industry in Gujarat has grown significantly. The invested capital to labor ratio has risen significantly and the employment rate has almost doubled between 1979 and 1980 and 1997–98. There are currently around 3,500 drug manufacturing units in Gujarat, which employ over 52,000 individuals. * 2000: The

Government of Gujarat The Government of Gujarat, also known as Gujarat Government, is the supreme governing authority of the Indian state of Gujarat and its 33 districts. It consists of an executive of the legislators appointed by the Governor of Gujarat, a judiciar ...

declared the state a "pharma hub" and initiated several measures to promote the growth of the industry. * 2003: Torrent Pharmaceuticals, one of the leading pharmaceutical companies in Gujarat, received US

FDA approval The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food ...

for its manufacturing facilities. * 2005: Alembic Pharmaceuticals, another major pharmaceutical company in Gujarat, received US FDA approval for its manufacturing facilities. * 2008: The Gujarat Government announced a new pharmaceutical policy to attract more investment in the sector. * 2017: The Government of Gujarat signs 249 MoUs with pharmaceuticals cos attracting investments worth Rs. 150 billion at Vibrant Gujarat Summit. * 2020: India's first

Medical device A medical device is any device intended to be used for medical purposes. Significant potential for hazards are inherent when using a device for medical purposes and thus medical devices must be proved safe and effective with reasonable assura ...

s manufacturing park announced in Rajkot. * 2022: The Government of Gujarat announced bulk drug park in

Jambusar Jambusar is a town and a municipality in Bharuch district in the Indian state of Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar p ...

, Bharuch. * Government announces new Biotechnology Policy in Gujarat.

Cluster and SEZs

Largest companies

By market capitalization

Top 6 public pharmaceutical companies in

by market capitalization as of April 2023. Top private pharmaceutical companies in India by reported valuation in 2022.

By sales and marketing operations within India

Multinational Pharmaceutical Companies ranked as per active presence of sales, marketing and business in India are as follows: #

Pfizer Pfizer Inc. ( ) is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German entrepreneurs, Charles Pfizer ...

# GlaxoSmithKline #

Sanofi Aventis Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France. Originally, the corporation was established in 1973 and merged with Synthélabo in 1999 to form Sanofi-Synthélabo. In 2004, Sanofi-Syn ...

# Merck #

Johnson and Johnson Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company i ...

Amgen Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. One of the world's largest independent biotechnology companies, Amgen was established in T ...

Novartis Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loc ...

Roche F. Hoffmann-La Roche AG, commonly known as Roche, is a Swiss multinational healthcare company that operates worldwide under two divisions: Pharmaceuticals and Diagnostics. Its holding company, Roche Holding AG, has shares listed on the SIX ...

Bristol-Myers Squibb The Bristol Myers Squibb Company (BMS) is an American multinational pharmaceutical company. Headquartered in New York City, BMS is one of the world's largest pharmaceutical companies and consistently ranks on the ''Fortune'' 500 list of the lar ...

# Eli Lilly and Company # Abbott #

Takeda Pharmaceutical Company The is a Japanese multinational pharmaceutical company, with partial American and British roots. It is the largest pharmaceutical company in Asia and one of the top 20 largest pharmaceutical companies in the world by revenue (top 10 followin ...

# Boehringer Ingelheim #

Astellas is a Japanese multinational pharmaceutical company, formed on 1 April 2005 from the merger of and . On February 5, 2020, the company announced management changes effective from April 1, 2020. Astellas is a member of the Mitsubishi UFJ Fina ...

Research and Development

The pharmaceutical sector in

has a significant focus on research and development (R&D), which has contributed to the growth of the industry in the state. The state government has been actively promoting R&D in the pharmaceutical sector and has established a number of initiatives to support this. Gujarat FDCA (Food and Drugs Control Administration) Innovation and Research Cell, which was established to promote R&D in the pharmaceutical industry. The cell provides support for R&D activities and facilitates collaborations between the industry and academia. In addition, the state government has established the Gujarat Biotechnology Research Centre (GBRC) to promote

biotechnology Biotechnology is the integration of natural sciences and engineering sciences in order to achieve the application of organisms, cells, parts thereof and molecular analogues for products and services. The term ''biotechnology'' was first used ...

research in the state. The centre provides infrastructure and technical support to research institutions and companies in the biotechnology sector. The Gujarat government has also established several science and technology parks in the state, including the

Gujarat Science City Gujarat Science City is a science education and entertainment centre located in Ahmedabad, Gujarat, India. Opened in 2002 and expanded in 2021, it has an IMAX 3D theatre; exhibitions on science, space, energy park, life science park, planet e ...

in Ahmedabad and the Gujarat Biotech Park in Vadodara. These parks provide infrastructure and support services to companies engaged in R&D activities in various sectors, including pharmaceuticals. Many of the leading pharmaceutical companies in Gujarat have their own R&D facilities and are actively engaged in the development of new products and technologies. For example, Zydus Lifesciences and Intas Pharmaceuticals one of the largest pharmaceutical companies in Gujarat, has a state-of-the-art R&D facility in Ahmedabad. Similarly, Torrent Pharmaceuticals has a dedicated R&D centre in

Gandhinagar Gandhinagar (, ) is the capital of the state of Gujarat in India. Gandhinagar is located approximately 23 km north of Ahmedabad, on the west central point of the Industrial corridor between Delhi, the political capital of India, and Mum ...

. In addition to the initiatives and facilities mentioned earlier, the Gujarat government has also established the

National Institute of Pharmaceutical Education and Research National Institute of Pharmaceutical Education and Research (NIPERs) are a group of national level institutes of pharmaceutical sciences or Pharmacy school in India. The Government of India has declared the NIPERs as Institutes of National Im ...

to promote R&D in the pharmaceutical sector. The centre provides infrastructure and

technical support Technical support (abbreviated as tech support) is a call centre type customer service provided by companies to advise and assist registered users with issues concerning their technical products. Traditionally done on the phone, technical suppor ...

to pharmaceutical companies and research institutions in the state. It also facilitates collaborations between the industry and academia, and encourages the commercialization of R&D outcomes. The state government has also established a number of policies and

incentive In general, incentives are anything that persuade a person to alter their behaviour. It is emphasised that incentives matter by the basic law of economists and the laws of behaviour, which state that higher incentives amount to greater levels of ...

s to promote R&D in the pharmaceutical sector. For example, the Gujarat Industrial Policy 2020 provides various incentives to companies engaged in R&D activities, including subsidies for the development of new products, tax exemptions on R&D expenditure, and funding for collaborations with

academic institution Academic institution is an educational institution dedicated to education and research, which grants academic degrees. See also academy and university. Types * Primary schools – (from French ''école primaire'') institutions where children ...

Gujarat government The Government of Gujarat, also known as Gujarat Government, is the supreme governing authority of the Indian state of Gujarat and its 33 districts. It consists of an executive of the legislators appointed by the Governor of Gujarat, a judiciar ...

has taken initiative to provide training in areas such as R&D, manufacturing, quality control, and regulatory affairs, and aims to develop a skilled workforce for the industry. the government

initiative In political science, an initiative (also known as a popular initiative or citizens' initiative) is a means by which a petition signed by a certain number of registered voters can force a government to choose either to enact a law or hold a ...

s, policies, and

s have created an environment that promotes R&D in the pharmaceutical sector in

. This has led to the development of innovative products and technologies, which has helped to establish Gujarat as a hub for the pharmaceutical industry in India.

Exports

Gujarat is one of the leading states in

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

in terms of pharmaceutical exports. The state has a well-established pharmaceutical industry with a strong focus on quality and innovation, which has helped it to become a major exporter of pharmaceutical products. According to the data from the Ministry of Commerce and Industry, Government of India, Gujarat was the second-largest exporter of pharmaceuticals in India during the fiscal year 2020–21, accounting for around 20% of the country's total pharmaceutical exports. Pharmaceutical exports from

, India have increased by 11% in fiscal year 2018–19, according to data provided by the Gujarat State Board of Indian Drug Manufacturers’ Association (IDMA). Gujarat accounts for a minimum of 28% of India's pharma exports, with exports totalling $5.36bn in 2018–19, up from $4.83bn the previous year. The Indian pharma industry has bounced back with an estimated export value of $19.15bn in 2018–19, an increase of 10.85% over the previous year. The sector's strong performance is partly attributed to the strengthening of the dollar against the rupee. Gujarat's pharmaceutical exports consist of various types of products, including formulations, bulk drugs, intermediates, and drug formulations. The major markets for Gujarat's pharmaceutical exports are the United States,

European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...

, Africa, and the Middle East. The

has also taken several initiatives to promote pharmaceutical exports from the state. These initiatives include the establishment of pharma parks and

special economic zone A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...

s, providing financial incentives and subsidies for exporters, and the organization of trade fairs and exhibitions to showcase the products of the state's

References

External links

Pharmaceutical Industry in Gujarat (Government of Gujarat)

Gujarat – Pharma hub

Gujarat's Pharma Industry
{{DEFAULTSORT:Pharmaceutical industry in India Pharmaceutical industry of Gujarat Healthcare in India Pharmacy in India Industries in India Gujarat Economy of Gujarat Economy of India