Speech of Hon 'ble Chief Ministerat Global Pharma CEO~s Conclave

at 10.30 AM in HICC, Hyderabad on 24-9-2010

Dignitaries on the Dais1. Shri. Rajeev Kher, Joint Secretary, Dept of Commerce,2. Shri. Smitesh Shaw, Chairman, Pharmaceutical Export Promotion Council3. Dr. Jharwal, Chairman, NPPA4. Mr. Stefan Borgas, CEO, Lonza AG5. Dr. Appaji, ED, PHARMEXCIL6. Senior Officials o~the State Government7. Captains of the Pharma Industry8. Ladies and Gentleman

It gives me an immense pleasure to participate in the inaugural session of the GlobalPharma CEOs Conclave, on the occasion of 6th Annual day of PharmaceuticalExport Promotion Council (PHARMEXCIL). I complement the Chairman,PHAEMEXCIL for conducting this event in Hyderabad, which is the Bulk DrugsCapital of India.

I am happy to note that Indian pharmaceutical industry, in the last few years, hasshown tremendous progress in terms of infrastructure development, technology basecreation, and a wide range of production, covering almost all therapeutic categoriesand dosag~ forms.

I understand that, India's pharmaceutical industry is the 3rd largest in the world interms of volume with a total turnover about US$ 21.04 billion, with a domesticmarket of US$ 12.26 billion which is estimated to touch US$ 20 billion by 2015,making India a lucrative destination for clinical trials for global giants. India tops theworld in exporting generic medicines worth US$ 11 billion with a growth rate of17%. India account for 20% of the global generics market. India is a globallyacknowledged source of high quality affordable generic medicine with rich vendorbase.

I am happy that India is poised to become manufacturing hub for pharmaceuticalindustry of the world and an emerging hub for Contract research, Bio-technology,Clinical trials and Clinical data management. '

I am very happy to place on record that, after establishment of PHARMEXCIL, theexports of our country have grown from around US$ 3.8 billion to US$ 8.9 billion.Exports have grown with formulations at 58%, bulk drugs at 41% and herbals at 1%.Indian share of exports to regulated countries are more than non-regulated countrieswhich is showing the growing confidence of India's capabilities.

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I am happy to say that Andhra Pradesh ranks 1s~in the manufacturing of Bulk Drugsand 3rd in manufacturing of formulations in the country: The State is contributing40% of the total Indian bulk drug production and 50% of the India bulk drug exports.The state pharma industry and exports are expected to grow at a rate of 20% on parwith the country's growth. The sector is creating employment to more than a lakh ofpersons in the state. There are over 440 pharmac'eutical exporters in the stateincluding Major Global players like NEKT AR, DuPont and EISA!. Our Governmenthave supported for the presence of PHARMEXCIL in Hyderabad including seedcapital assistance to promote pharma exports in the state. Pharina industry of the statereceived global recognition in meeting the challenge of H 1N 1 pandemic.

Andhra Pradesh has identified the Pharma sector as one of the potential sectors of theState. In order to regulate the zoning of Pharma industry, the State Government havepromoted Jawaharalal Nehru Pharma City in an area of 2200 acres at Visakhapatnamwith required infrastructure facilities, which is first of its kind in the country.Similarly, our Government have promoted 5 Pharma SEZs and 4 Biotech SEZsdeveloped by APIIC and local Pharma Industrialists. A Cluster for manufacturing ofMedical Devices & Equipments called MEDTECH VALLEY has also been launchedat Jawaharnagar near Genome Valley, the Biotech Hub of India.

To meet the human resources challenges, I am happy to inform that the state haspromoted 255 Pharma Colleges with an annual in take of 15,240 students and alsoNational Institute of Pharmaceutical Education and Research (NIPER) in associationwith Government of India to offer post graduate courses & research programs invarious Pharma disciplines. To ensure the students acquire the right kind of skills toabsorb themselves in the pharma sector, I appeal to the pharma industry to workclosely with the pharma colleges to share the inputs on the industry requirement.

Our Government have launched most investor friendly industrial policy duly giving amajor thrust for Pharma and Biotechnology sector. I am happy to share that our stateis offering the lowest power tariffs among the industrialized states of the country.Over and above this, the state is offering Rs 0.75 Ps per unit reimbursement for aperiod of 5 years. The policy covers, Investment subsidy, reimbursement of VAT,Single Window clearance system and special incentives for mega projects. The statehas witnessed huge investments in recent past through Capital,Expenditure (CAPEX)expansions, new projects, and also in the new Pharma SEZs.

I am happy to say that Government of Andhra Pradesh is committed to initiative anystep that is required for promotion of pharma industry in the state.

I complement, Pharmaceutical Export Promotion Council for conducting this event ina grand scale. I wish the deliberations in this conclave will go long way to excel thegrowth of Indian pharma sector.

JAI HIND

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