Gujarat is one of the most developed states in India. Gujarat has accounted for around 35% to 46% share of pharmaceutical production of the country over the last two decades.
The history of Gujarat’s pharmaceutical industry goes back to 1907 when a company known as Alembic Chemical Works CO Ltd. was established with the objective of manufacturing tinctures and alcohol for pharmaceutical products. Later, during the period of 1940s and 1950s (after 2nd World War), various other companies were established in the state.
The pharmaceutical industry in Gujarat saw major growth after the declaration of Gujarat as a state with Dr. Jivraj Mehta as the first Chief Minister in the year 1960. The establishment of Cadmach (a manufacturing unit of pharmaceutical machineries) in the year 1967 also had a major impact in the growth and development of the pharmaceutical industry in Gujarat.
During 1990s and 2000s, the large pharmaceutical companies of Gujarat started increasing their production with the objective of taking advantage of Globalisation and Liberalisation of the Indian economy. Many companies started taking advantage of the market boom by making investment in capital markets, and raising capital for production and research facilities. During last decade, many pharmaceutical companies of Gujarat had taken the route of merger and acquisition for increasing their global presence. Over the last few years, large numbers of Gujarat’s pharmaceutical companies have been approved by USFDA and other international regulatory bodies for expanding their presence in semi-regulated and regulated markets.
With increasing penetration of health insurance, increasing spend on health insurance, and increasing number of lifestyle related diseases, there is abundant opportunities for pharmaceutical companies of Gujarat. However, in order to take advantage of these opportunities, and to remain competitive in pharmaceutical market, it is of paramount importance for the Gujarat’s pharmaceutical companies to constantly upgrade their products by giving due emphasis on R&D activities.