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    Maharashtra - Manufacturing Hub

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    Sunilk78
    Maharashtra is the largest economy in India and has emerged as a major center for pharmaceutical manufacturing and exports. It accounts for 40% of India's bulk drug and formulation production. Mumbai is the financial capital and home to many corporate headquarters. Maharashtra has well-developed infrastructure that supports the pharmaceutical industry, including transportation and electricity. Many major pharmaceutical companies have production facilities in the state, which is looking to boost research and development through new biotechnology parks.

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    Maharashtra - Manufacturing Hub

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    Sunilk78
    165 views3 pages
    Maharashtra is the largest economy in India and has emerged as a major center for pharmaceutical manufacturing and exports. It accounts for 40% of India's bulk drug and formulation production. Mumbai is the financial capital and home to many corporate headquarters. Maharashtra has well-developed infrastructure that supports the pharmaceutical industry, including transportation and electricity. Many major pharmaceutical companies have production facilities in the state, which is looking to boost research and development through new biotechnology parks.

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    Maharashtra is the largest economy in India and has emerged as a major center for pharmaceutical manufacturing and exports. It accounts for 40% of India's bulk drug and formulation production. Mumbai is the financial capital and home to many corporate headquarters. Maharashtra has well-developed infrastructure that supports the pharmaceutical industry, including transportation and electricity. Many major pharmaceutical companies have production facilities in the state, which is looking to boost research and development through new biotechnology parks.

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    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    165 views3 pages

    Maharashtra - Manufacturing Hub

    Uploaded by

    Sunilk78
    Maharashtra is the largest economy in India and has emerged as a major center for pharmaceutical manufacturing and exports. It accounts for 40% of India's bulk drug and formulation production. Mumbai is the financial capital and home to many corporate headquarters. Maharashtra has well-developed infrastructure that supports the pharmaceutical industry, including transportation and electricity. Many major pharmaceutical companies have production facilities in the state, which is looking to boost research and development through new biotechnology parks.

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    Attribution Non-Commercial (BY-NC)
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    Download as doc, pdf, or txt
    of 3

    Maharashtra: A manufacturing hub

    Located in the western region (western coast), Maharashtra is the third


    largest state of the country and has the largest economy in all states of the country.
    Mumbai is the capital of Maharashtra and also know as the financial capital of India,
    It is also the base for corporate headquarters for many of major multinational
    pharmaceutical and domestic pharmaceutical companies.

    Maharashtra emerged as the one of the major centers for the manufacturing and
    export of the basic drugs and formulations. Maharashtra is acting as the torch
    bearing state for the pharmaceutical industry for India. It almost accounts for the 40
    percent of all Indian production of bulk drugs and formulation. The US$ 5 billion
    Indian pharmaceutical industry in 2003 is expected to grow to US$ 25 billion by
    2010.

    The state boasts its well developed transportation and industrial infrastructure as it
    has the one of the best road, railway and sea transportation facilities available in
    the country. It is well connected by the airports as well; Maharashtra has 10 cities
    which have the air connectivity, the main airports being Mumbai, Pune, Nagpur and
    Nashik. Maharashtra has the largest installed capacity for the electricity generation
    in the country i.e. around 79,721 kWh. All this favorable conditions helped the
    pharmaceutical industry to grow in the state.

    Some of the major players present in the state are Wockhardt, Nicholas Piramal,
    Cipla, GlaxoSmithKline, Jhonson and Jhonson, USV Ltd., Pfizer, Sun and Lupin etc.

    Grabbing the manufacturing opportunity

    The bulk drug industry is highly fragmented and has the large number of
    small player in India. Higher manufacturing cost makes western countries to look for
    cheaper destination s like India for manufacturing, to grab this opportunity most of
    bulk drug and intermediates manufacturing companies are planning to open up or
    expand their units in states like Maharashtra, Gujarat, Punjab and Haryana.
    Maharashtra being the largest investment spender in the total investment made in
    India i.e. around 55%, followed by Madhya Pradesh and Punjab. As Maharashtra has
    one of the best physical infrastructure in the country, many of the companies has
    opened their manufacturing units in the state’s Pharma-Biotech SEZs .Table 1.1
    shows the concentration of the manufacturing units located in Maharashtra.

    Table: 1.1

    State Number of manufacturing Units %share


    Formulation Bulk Total
    Drugs
    Maharashtra 1928 1211 3139 29.7

    Source: Dept of pharmaceuticals (GOI), 2008-09

    As state has open specific Pharma- biotech SEZ’s like MIDC Sector Specific Pharma
    SEZ for pharmaceuticals at Krushnoor district, Nanded, Wokhardt Infrastructure
    Development Ltd., Pharma SEZ and Serum Bio-Pharma Park, Pune, Maharashtra-
    Pharma and Bio-technology has allowed pharma corporate to grab the opportunity
    of contract manufacturing by setting up their manufacturing units. Government of
    Maharashtra has offered various incentive schemes like issuance of allotment order
    in 15 days, possession of plot / shed in 7 days, building plans approval in 15 days,
    grant of water connection and urban land ceiling permission in 10 days, all this help
    Maharashtra to become the manufacturing hub as it is today.

    As the state has availability of raw material supplier for API, formulation and
    packaging help pharmaceutical companies to grow faster in comparison to other
    sates of India.

    Research and Development

    With the introduction of product patent in India, Pharma companies have


    recognized that research as one of the key factor for the long term survival and
    growth. Government of Maharashtra is planning to up the biotechnology park near
    Pune to boost up the R&D work in the state.
    Policy Reforms

    For biotechnology Maharashtra government has came up with strong


    biotechnology policy in 2001 and after this government of Maharashtra has decided
    to set up the biotech park in Hinjewadi in Pune with 136-acre and an Agro biotech
    park at Jalna with 100-acre area.

    The policy is designed so as to promote the companies to set up their R&D centers
    in these parks, it offer the lower tax rate under the value-added tax regime, twice
    the existing floor space index (FSI) for biotech units, exemption from stamp duty
    and registration fee and 30 per cent of the fixed capital investment are some of the
    financial incentives and tax benefits to those who set up biotech units in
    Maharashtra. Under the new policy, biotech units can be set up in all regions of the
    state and will be eligible for incentives allowed for the state's second least
    developed regions.

    To monitor the implementation of the mandate placed by the government, state has
    appointed Dr. Swati Piramal, executive director, Nicholas Piramal India, for the
    newly constituted Maharashtra Biotechnology Commission. The Commission,
    constituted under the chairmanship of Dr. R. A. Mashelkar, director general, Council
    of Scientific & Industrial Research (CSIR) and Secretary to the Government of India.
    The Policy was notified by the Government in January 2002 and is aimed at
    promoting Biotech industries in the state.

    To sum up the all the state has high level of industrialization that puts forth a sound
    base for the externalities to be desired in the setting up of any pharmaceutical
    company. Moreover the well developed and established pharmaceutical sector of
    the state allows for a new entrant to reap a late entrant advantage of
    understanding the extent of the market, the kind and nature of competition,
    benefits of the externalities, the benefits of the decreasing returns from state level
    investment in infrastructure and industry as a whole etc.

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