Pharma Companies Shift Expansion from Telangana to Andhra's Kurnool

Economic Times
Economic Times
2d ago • 10 views
Hyderabad-based pharma companies are expanding in Andhra Pradesh's Kurnool due to Telangana abandoning its Pharma City and lack of available land.
Pharma Companies Shift Expansion from Telangana to Andhra's Kurnool
A What happened
After Telangana's Congress government abandoned its ambitious Hyderabad Pharma City plan in early 2024 and pivoted to building smaller pharma villages, two Hyderabad-based pharmaceutical companies, Sigachi Industries and Virupaksha Organics, shifted their expansion projects to Andhra Pradesh’s Orvakal Industrial Park in Kurnool district. With land allocated—120 acres for Virupaksha and 100 acres for Sigachi—both companies plan combined investments exceeding Rs 2,300 crore and employment opportunities for approximately 3,000 people. The relocation was influenced by Telangana’s land unavailability for red category industries and Andhra Pradesh's strategic location with superior infrastructure. Virupaksha is concurrently preparing for an IPO valued at Rs 740 crore, while Sigachi is rebuilding after a safety incident. These developments signify a regional shift in pharmaceutical manufacturing hubs within southern India.
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Key insights

  • 1

    Policy Shift in Telangana: Telangana's government scrapped the large-scale Pharma City project in favor of smaller 'pharma villages,' leading to a pause and reconfiguration in its pharmaceutical industrial development.

  • 2

    Industrial Expansion in Andhra Pradesh: Andhra Pradesh's Orvakal Industrial Park offers ready infrastructure and significant land allotments, facilitating major investments by Sigachi Industries and Virupaksha Organics totaling over Rs 2,300 crore.

  • 3

    Economic and Employment Impact: The new manufacturing units in Kurnool district are projected to generate around 3,000 jobs, supporting regional industrial growth and economic development.

Takeaways

The strategic move by major pharmaceutical companies from Telangana to Andhra Pradesh underscores the impact of state-level policy decisions on industrial localization, reinforcing Andhra Pradesh's role as an emerging pharmaceutical hub.

Topics

Health & Medicine Pharma & Biotech World & Politics Development