Life sciences firms shift base from China to Hyderabad
One of the reasons for companies opting for Genome Valley was mainly due to the Telangana government’s TS-iPASS – the single window policy for approvals to set up new units
Hyderabad: The last three years have seen a major surge in the life sciences sector in Telangana, with companies from around the globe, especially China, looking towards Hyderabad to set up shop. Several global firms, which had crucial operations in China have now established units at the Genome Valley at Shamirpet, courtesy time-bound approvals by the State government and the tailor-made infrastructure made available here.
This trend saw its beginnings after the outbreak of Covid-19 and picked up over the last three years, with nearly 20 percent to 30 percent of business operations of several firms being shifted from China to Genome Valley, a senior official of a company operating from the Genome Valley said.
Also Read
Though most of the firms that shifted here were from China, a few life sciences companies from Brazil and Belgium too have relocated their operations to Genome Valley, the official said.
“The Unique Selling Proposition of Genome Valley is it being a dedicated life sciences cluster. There is no such exclusive cluster in any other city. Save for vaccines, bulk drugs are not produced here and there is no pollution,” the official added.
Listing out the reasons for companies opting for Genome Valley, another senior official said it was mainly due to the Telangana government’s TS-iPASS – the single window policy for approvals to set up new units.
“I am not exaggerating but permissions are being accorded within 21 days. Managements do not have to run from pillar to post to get approvals and a majority of the work is done online,” he said.
Prior to formation of Telangana, there was no industrial policy and things were a bit unorganized. Now, everything was being handled professionally and in a time-bound manner, the official said.
Telangana government extends exclusive power and water supply for Genome Valley. About 50 MW to 60 MW power is supplied through exclusive substations and 10 MLD water is supplied from the Alwal pumphouse. These apart, market potential, affordable land prices, nominal rents for tenants, availability of skilled manpower and infrastructure are a few other factors that are drawing companies towards Genome Valley.
Hyderabad is a pharma hub and there was lot of market potential for life sciences companies in the city. Compared to other cities, land prices here were still affordable, which aids in offering space for even startups at nominal rates, the official added.
Heavy demand for space at Genome Valley
Considering the tailor-made infrastructure and the support extended by the Telangana government, there is heavy demand for space at Genome Valley. Already, land under Phases I and II spread over 700 acres is occupied and there is hardly any space left in the 600 acres being developed in Phase III.
There is tremendous pressure on the State government to expand Genome Valley further. Interestingly, the demand is much higher from existing companies, who want to expand their operations. Enquiries are increasing and there is not much of space left, a representative of a wealth and asset management services company said.
