Pharma firms to switch to Euro

As it completes its 100th year, Gujarat's pharma industry is hopeful that the appreciating rupee would not lead to job cuts.

With the state accounting for exports worth Rs 4,500-5,000 crore, Gujarat-based pharma companies are among the worst hit by the recent rupee appreciation.

Even as exports are set to grow, the companies have decided to switch to more stable currencies like Euro, as well as initiate cost reduction measures. The $2.5-billion (around Rs 14,000 crore) Gujarat's pharma industry, which accounts for 40 per cent of the country's pharmaceutical production, completed its centenary year in 2007.

Since 1907 with the inception of Alembic in Vadodara, Gujarat fields manufacturing bases of some leading Indian pharmaceutical companies and multinationals.

Talking about the growth trajectory of the state pharma industry, Pankaj Patel, CMD, Zydus Cadila Healthcare Limited said, "By 2020, not only Indian but global pharma companies will establish their research presence in Gujarat. R&D, generic manufacturing and biological manufacturing like r-human proteins will be the key strengths in future."

R&D, which forms around 8 per cent of the total turnover in the state, is expected to scale up to 12-15 per cent in the next 5-10 years, said Patel.

"Gujarat also has a strong pharma academia with institutes like LM College of Pharmacy, the first in the country. The state has been churning out trained manpower which will be absorbed by the industry following scaling up of operations," added Patel.