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APIIC: Leveraging on ‘Andhra Advantage’
Jayesh Ranjan, Vice Chairman & Managing Director, Andhra Pradesh Industrial Infrastructure Corporation
With a number of investments from domestic and international players, Andhra Pradesh has certainly emerged as a favourite destination for both start-ups and expansion of business horizons. Favourable business environment in the state has played a crucial role in attracting investment.

Will you please brief us on Andhra Pradesh (AP) favourable business environment?
AP is among the top 3 states of the country for preferred industrial investments. Leveraging on various advantages such as second largest mineral store house of India, second longest coast line of 974 kilometres, presence of top 85 global corporate houses, huge agriculture and horticulture production capacities, an exclusive Aerospace SEZ and helicopter cabin manufacturing facility by TATA in JV with Sikorsky Aircraft Corporation, globally recognised and fastest growing base for IT & IT enabled services, investor-friendly and proactive policies which are rated one of the best in the country, Andhra Pradesh (AP), over the years, has emerged as a favourite destination for investment. The state is an important producer of iron and steel, and also known as the granite power house of the country.

Besides, AP is the first to sign MoU with Hindustan Petroleum Corporation Limited (HPCL) for Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) between two industrialised regions namely - Visakhapatnam and Kakinada which are spread over an area of 604 Sq KMs. The state has been able to be on the forefront in building its intellectual capital with well-known institutions in the world and number of centers of excellence for training.

AP is known as Tourist and business traveller’s paradise and boasts of good quality of life with wide ranging facilities for leisure, culture and recreation.

What are the advantages for Pharma Industry?
Hyderabad is the Bulk Drug Capital of India accounting for one-third of the total production. The state produces a majority of 500 basic drugs produced in the country that makes it second leading exporter of bulk drugs. Over 2500 pharma companies are located in AP. The state is the leading centre for biotechnology and known as Vaccine Capital of India. The industry accounts for 43 per cent of the total biotech revenue generated by companies in South India (US$ 1104 million). There are lots of opportunities for manufacturing of bulk drugs & pharma, generics, pharmaceutical formulations and contract R&D. The state also takes pride in a strong R&D base as several prominent institutions are present in the state.

‘Hyderabad is known as the Pharma capital of India and AP as the pharma state of India. According to you what set of factors led to the growth of pharma industries in AP?
AP has grown into a pharma hub for bulk drugs basically for two reasons. Historically, it is because of Indian Drugs & Pharmaceutical Limited (IDPL) and entrepreneurship & availability of adequate talent pool in the state.

The Indian pharmaceutical Industry, today, is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organised sector, the Indian pharma industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 per cent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70 per cent of the market with market leader holding nearly 7 per cent of the market share. It is an extremely fragmented market with severe price competition and government price control.

The industry, which is now meeting over 95 per cent of the country’s pharmaceutical needs, was almost non-existent before 1970. With the compound annual growth of 19.8 per cent, the industry has grown from `4 billion in 1970 to ` 290 billion in 2003. The pharma sector has shown tremendous growth over the years. Bulk drug manufacturing is largely concentrated in AP, which accounts for more than one-third of the country’s total bulk drug production, followed by Gujarat.

The Indian bulk drug industry has lately been gaining significant presence in the global market as foreign and multinational companies are looking to sourcing APIs and intermediates from Indian manufacturers. Factors favoring the industry are vast resources of technical people, state-ofthe- art manufacturing facilities, low cost and the advantage of the English language.

As a part of government’s support to increase exports, Special Economic Zones/Duty Free Zones have been set up and several manufacturers of bulk drugs have been shifting their facilities to these areas. As a result, the diverse spread has now started getting consolidated and concentrated in certain regions across the country. Today, there are six SEZs in the state developed for pharmaceuticals industry. Today, AP-based pharma companies manufacture the maximum number of APIs. Thus, Andhra Pradesh is home to many pharmaceutical units.

What services does APIIC offer?
  • APIIC has fully fledged Engineering wing
  • Provides Infrastructure facilities to all IPs/SEZs/IT Parks
  • Services include provision of :
  • Internal Roads and External Connectivity
  • Water Supply
  • Power Supply
  • Storm Water Drains & Internal Drainage arrangements
  • Buildings works
  • Deposit contribution works to Government Departments
  • JV Projects
  • CETPs and STPs
  • Obtaining Environmental Clearance
What are your comments on ChemTECH South 2013?
The expo being organised in Chennai has advantages for Andhra-based companies due to the proximity of the location to the state. The number of visitors to the expo is expected to be high which would bring more exposure and promotion to their business. The companies expect to take advantage of the B2B meetings during the show and expect to improve their networking which would result in improved sales.

We (all participating companies from AP) expect to take advantage of the new technologies in the fields of chemical, pharma and automation being displayed in the expo and would explore the possibility of adapting new technologies in our companies so as to become cost effective and more profitable.

The number of companies expected to participate in the expo from the state of Andhra Pradesh is about 8 to 10. The companies expected to participate are from the Bulk Drug and Pharmaceutical sectors.