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Pharmaceutical industry in Gujarat

The Pharmaceutical industry in Gujarat ranks number one in India with a 33% share in drug manufacturing and a 28% share in drug exports. The state has 130 USFDA certified drug manufacturing facilities. Ahmedabad and Vadodara are considered as pharmaceutical hubs as there are many big and small pharma companies established in these cities.

Gujarat is one of the major states in India and has a significant presence in the pharmaceutical industry. The state is home to several large pharmaceutical companies: Sun Pharmaceuticals ,Cadila Pharmaceuticals, Torrent Pharmaceuticals, Alembic Pharmaceuticals, Intas Pharmaceuticals, Zydus Lifesciences, Amneal Pharmaceuticals , USV Pharmaceuticals, Baxter Healthcare and Outsuka Pharma more.

Gujarat has become a hub for the pharmaceutical industry, with several established companies such as Torrent Pharmaceuticals, 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 (CAGR) of 54 percent in capital investments over the last three years.

Gujarat's pharmaceutical industry 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.

1907: Alembic Pharmaceuticals, one of the oldest pharmaceutical companies in India, was established in Vadodara, Gujarat. This was just six years after India's first domestic pharmaceutical unit, Bengal Chemical and Pharmaceutical Works, was set up in Calcutta.

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 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 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 devices manufacturing park announced in Rajkot.
2022: The Government of Gujarat announced bulk drug park in Jambusar, Bharuch.
Government announces new Biotechnology Policy in Gujarat.

Top 6 public pharmaceutical companies in Gujarat by market capitalization as of April 2023.

Top private pharmaceutical companies in India by reported valuation in 2022.

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

The pharmaceutical sector in Gujarat 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 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 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.

In addition to the initiatives and facilities mentioned earlier, the Gujarat government has also established the National Institute of Pharmaceutical Education and Research to promote R&D in the pharmaceutical sector. The centre provides infrastructure and technical support 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 incentives 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 institutions.

Gujarat government has taken the 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 initiatives, policies, and incentives have created an environment that promotes R&D in the pharmaceutical sector in Gujarat. 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.

Gujarat is one of the leading states in India 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 Gujarat, 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, Africa, and the Middle East.

The Gujarat government has also taken several initiatives to promote pharmaceutical exports from the state. These initiatives include the establishment of pharma parks and special economic zones, providing financial incentives and subsidies for exporters, and the organization of trade fairs and exhibitions to showcase the products of the state's pharmaceutical industry.