Hyderabad: In the past three years, there has been a significant increase in the life sciences industry in Telangana, particularly in Hyderabad, with companies from various countries, including China, considering it as a favorable location for their businesses. Thanks to the timely approvals by the state government and the customized infrastructure at Genome Valley in Shamirpet, numerous multinational corporations that previously had significant operations in China have established their units here.
According to a senior official of a company operating from Genome Valley, this trend began after the Covid-19 outbreak and has gained momentum in the past three years. As a result, nearly 20% to 30% of business operations of several firms have been relocated from China to Genome Valley.
According to the official, while most of the companies that moved to Genome Valley were from China, a few life sciences firms from Brazil and Belgium have also relocated their operations there.
The official added that Genome Valley’s unique selling proposition is its status as a dedicated life sciences cluster. Unlike other cities, there are no exclusive clusters solely for life sciences. Furthermore, Genome Valley does not produce bulk drugs except for vaccines, and it is a pollution-free zone.
Another senior official listed the reasons why companies choose Genome Valley, citing the Telangana government’s TS-iPASS policy as the primary factor. The TS-iPASS is a single-window policy that streamlines the approval process for setting up new units.
The official stated that permissions are being granted within 21 days, and the majority of the process is done online, eliminating the need for management to run around for approvals. He emphasized that he was not exaggerating the efficiency of the system.
Prior to the formation of Telangana, the official acknowledged that there was a lack of industrial policy, leading to an unorganized system. However, now, everything is managed professionally and in a timely manner.
The Telangana government provides exclusive power and water supply to Genome Valley, with approximately 50 MW to 60 MW power supplied through exclusive substations and 10 MLD water supplied from the Alwal pumphouse. Additionally, market potential, affordable land prices, nominal rents for tenants, skilled manpower, and infrastructure are all factors contributing to the appeal of Genome Valley.
The official added that Hyderabad is a pharma hub, and there is a significant market potential for life sciences firms in the city. Compared to other cities, land prices remain affordable, making it possible for startups to rent space at nominal rates.
Due to the tailor-made infrastructure and support from the Telangana government, there is a high demand for space at Genome Valley. The land in Phases I and II, spread across 700 acres, is occupied, and there is limited space left in the 600 acres being developed in Phase III. Existing companies are requesting to expand their operations, leading to pressure on the state government to expand Genome Valley further. Enquiries continue to rise, and there is limited space left.