Elevating the state of healthcare

Andhra Pradesh and Telengana are planning a slew of healthcare projects including a medical technology park and a mega pharma city as the two States boost up re-kindle industrial interest.

Hyderabad, already a key hub for bulk drugs manufacture, is building up on the base with a new pharma city. It already has some 500 pharma and biotech companies, including majors like Dr Reddy’s Laboratories Ltd and Aurobindo Pharmaceuticals.

Telengana’s Department of Industries expects to see significant investments in the new pharma city from existing companies as well as new players.

“We have already acquired over 2,000 acres for the pharma city. All most all major drug companies present in Hyderabad are ready to invest in this project besides those from other States. We will be completing the land acquisition process very soon,’’ says E Venkata Narasimha Reddy, Vice-Chairman and Managing Director, Telangana Industrial Infrastructure Corporation (TSIIC).

The exclusive pharma zone is coming up on about 11,000 acres near Mucherla in the neighbouring Rangareddy district with an in-house pharmaceutical university and research facility, among others. It will have a separate unit of the drug control administration to speed up regulatory clearances, says Akun Sabharwal, Director, Drug Control Administration, Telangana.

An investment of Rs 25,000 crore is planned for the pharma city, according to industry hands. “There is immense scope for development of pharma and healthcare industry in Telangana, and the pharma city could easily anchor this,’’ observes Rajeev Nannapaneni, Vice-Chairman and Chief Executive with Natco Pharma.

The State Government has further allotted 400 acres on the outskirts of Hyderabad for an advanced ‘Smart Health City’. This city will have world class infrastructure, hospitals, pharmacy and nursing colleges, and medical stores. As for neighbouring Andhra Pradesh, it will be home to a first-of-its-kind industrial park for the manufacturing medical devices. A decision to this effect was taken recently by the Andhra Pradesh government and the Association of Indian Medical Device Manufacturers (AIMED).

The due diligence for a location is on. And, according to the Association of Indian Medical Device Manufacturers spokesperson Rajiv Nath, the proposed park will be nationally important as it increases Andhra Pradesh’s footprint in the healthcare industry. Nath, who is also Joint Managing Director of Hindustan Syringes & Medical Devices, explains that the country depends on imports to meet 80 per cent of its requirement for high-end medical devices.

Both States have seen increased traction in hospital and other medical services – be it at Hyderabad or Vijayawada. For instance, Malaysia’s healthcare major IHH Healthcare Berhad acquired over 73 per cent stake in Hyderabad-based Ravindranath GE Medical Associates Private Ltd’s Global Hospitals for Rs 1,284 crore. Earlier, it had up picked up a controlling stake in Continental Hospitals Ltd for around Rs 310 crore.

The home healthcare segment too is looking up as major players like Bengaluru-based Nightingales and post-hospitalisation care-provider SuVitas Holistic Healthcare start operations in Hyderabad.

And corporate hospitals, including Care Hospital, are in the process of setting up branches in Andhra Pradesh. Dilip Jose, Chief Executive of Care Hospitals, expects the increased focus on medical infrastructure to improve access to healthcare in smaller towns and cities. At present, most of the advanced facilities or hospitals are located mainly in Hyderabad.

Most of these projects are still in their early stages, and much will depend on how the two States pull it off, not just in the interest of industry, but largely for the people who will flock to these facilities if they deliver quality services as promised.

COMMENT NOW