State contributed 28% of national exports.
Pharmaceutical exports from Gujarat has clocked a 12 per cent growth during the 2010-11 fiscal touching around Rs 11,000 crore, according to estimates from the Indian Drug Manufacturers' Association (IDMA).
"Gujarat contributed nearly 28 per cent of national pharmaceutical exports in the last financial year, which is roughly around Rs 11,000 crore," said Chirag Doshi, secretary, IDMA, Gujarat chapter.
The industry is back on a growth track after the relatively dull years during the global meltdown, when exports from the state had dipped , he added. India's net turnover in the pharmaceutical industry including exports is Rs 90,000 crore, and at present Gujarat is contributing around 30 per cent of total pharmaceutical production in the country.
The pharmaceutical industry in the state has been clocking a compounded annual growth rate (CAGR) of 11 per cent. "It had peaked to a 14-15 per cent growth during 2007-08, after which there was a slump in exports growth. Exports had bottomed out during 2008-09, when it grew by only 9.5 per cent," Doshi said.
Net pharma exports from India during 2008-09 was around Rs 30,759 crore compared to Rs 31,130.70 crore in 2007-08. Gujarat contributed around 22-24 per cent of national pharmaceutical exports during that period.
One of the reasons behind the state's revival in terms of pharmaceutical exports is the coming home of many Gujarat based companies in the last two years who had moved to tax-free havens like Uttrakhand and Sikkim.
The state's share in national pharmaceutical production, once around 42 per cent, had fallen to 20 per cent during 2008-09. The graph, Doshi said, is back on its upward curve for the past few years, for two reasons. One, the deadline for tax exemption in most hill states is nearing the deadline. Two, the excise duty is now down to 4 per cent from 16 per cent in 2006-07, so the hill states are not as attractive.
Many companies in the state are in the middle of setting up or expanding their special economic zones (SEZ) which is likely to boost exports in the coming years.
Zydus Infrastructure, which is developing the Zydus Pharmez, has applied for a second phase of development for its SEZ in December last year. Dishman Pharma too has started work on its proposed SEZ, while another major custom research and manufacturing services (CRAMS) company Jubilant Organosys is in the process of adding new manufacturing facilities at its Bharuch SEZ.
Even mid-sized local pharma companies are also on the lookout for foreign tie-ups. Last month at least three Gujarat based companies were a part of the 55 member delegation to Nigeria sent by the Pharmaceuticals Export Promotion Council of India (Pharmexcil) under its 'Brand Pharma India' campaign.
The team comprising Medivil Pharmaceuticals, Callion Laboratory and West Coast Pharmaceuticals from Gujarat had gone to create awareness about the Indian pharmaceutical industry in the African country and also look for potential investment opportunities. Indian pharmaceutical exports to Nigeria had dipped from Rs 226 crore in 2008-09 to Rs 190 crore in 2009-10. Pharmexcil has set a target of Rs 300 crore for this year.