Jitendar Sharma, CEO, Andhra MedTech Zone (AMTZ) in an interaction with Prathiba Raju, shares that the upcoming maiden med tech zone in Andhra Pradesh is the one stop solution for medical devices manufacturers and innovators, which will categorically reduce the cost of manufacturing and pave way to make healthcare more affordable and accessible
How does Andhra Pradesh (AP) government look at the medical devices sector? What kind of measures have been taken so far to boost the sector?
The Indian medical devices market has grown from $ 2.02 billion (Rs 13,130 crores) in 2009 to $3.9 billion (Rs 25,259 crores) in 2015 at a CAGR of 15.8 per cent. This accounts for approximately 1.7 per cent of the global medical device market in 2015. The industry estimate suggests that the Indian medical devices market will grow to $8.16 billion (Rs 53,053 crore) in 2020 at a CAGR of 16 per cent. India is one of the top 20 global medical devices markets and the fourth largest in Asia. However, the current Indian market is import dependent to the extent of 78 per cent with that on complex technologies – over 90 per cent.
Fortunately, Indian medical devices industry is also a sunrise sector in the healthcare space, and AP government understands its potential in creating affordable and quality healthcare for all. So the state government has taken a holistic approach to identify the hurdles and possible solutions to overcome them in medical devices sector. Andhra Med Tech Zone (AMTZ) – ‘One Stop Solution for Medical Devices Manufacturers and Innovators’ is AP government’s strategy to boost the medical devices sector. The creation of AMTZ is based on the fact that medical devices manufacturing requires certain high investment facilities which are too capital intensive for individual manufactures to invest upon. A park with in-house high investment scientific facilities would help manufacturers reduce the cost of manufacturing.
Visakhapatnam has got the priority status for fiscal policy. How can medical devices manufacturers leverage this opportunity?
Visakhapatnam district has been accorded a priority status on September 30, 2016. This brings with itself 15 per cent investment allowance and 15 per cent additional accelerated, culminating in substantial potential for manufacturing sector.
Tell us more about the AMTZ.
The zone is proposed to have all high investment scientific facilities in-house to reduce manufacturing process costs. It will have modern state-of- art 250-300 independent manufacturing units, each over a built-in ready to use area in 1.00 acres/0.50 acres /0.25 acres, at a very cost-effective long-term lease rate for 33 years. Located in an area which is well connected with rail, road, waterways and airport and proximity to industrial corridors, port and harbour to reduce logistical costs. AMTZ in Visakhapatnam is India’s first medical devices manufacturing zone spread over 270 acres. Within six months of establishment, 20 per cent of the zone is already booked. The pace has been excellent and the confidence of domestic manufacturing sector has been assuring.
Do you think that establishment of the AMTZ and increased FDI investments amongst private hospitals within the state can boost medical device exports from AP? (if yes, share few figures)
We expect 250-300 manufacturers to set up their units in AMTZ. We assume each to touch a modest turn-over of Rs 50 crores, and 25 per cent of it to be through export market that would lead to an export potential of Rs 3750 crores, approximately 15 per cent of India’s current import dependency.
How does the AMTZ differ from other medical devices hubs?
AMTZ is an integrated medical devices manufacturing park, and its uniqueness is the innovative ecosystem that it offers, which encompasses every possible aspect to make a business success. This includes –
- Prebuilt manufacturing units
- Capital intensive common
- Scientific facilities on pay per use model
- Lower cost for testing services
- Finance and technology transfer services
- Central warehouse and logistics
- Promotional activities
- Med tech Expo Halls, convention centre, etc.
- Regulators and export facilitation
How will AMTZ project add value to the healthcare sector within the state?
The indigenous products coming out of AMTZ park is expected to reduce import dependency and the cost, without compromising on the quality. Thus, it will help in making healthcare more affordable and accessible. It is expected to generate huge employment, and will ensure the skill building exercise turns the region into a hub for medical device engineering.
As the SEZ has not been a good option in our country, do you think AMTZ would be benefit in the long run?
AMTZ is not a SEZ, as its primary focus is to reduce import dependency and then to become a global leader. The option of SEZ forces a manufacturer to primarily produce for export market. In case of medical devices, this would deny the manufacturers of the domestic market which has a huge potential. Hence, strategically the zone has been kept as a non-SEZ area.
What is the investment expected in the current fiscal?
Investment will vary as the medical devices industry is myriad with each category having their unique need. The investment will be in the form of plant, machinery, knowledge, patents and of course the manufacturing plant inputs in terms of raw materials, which would be a boost to the local supply chain and component industry.
In the next five years, how will the state contribute in boosting the medical devices industry in the country?
AMTZ being the vanguard is expected to inspire many states to come up with similar models/ parks. So, in the next five years, we are bound to witness India’s medical devices growth story, leveraging parks like AMTZ. As mentioned it is one stop solution, in next five years is expected to be the hub of innovation, which will craft the story of indigenous medical devices to make the dream come true – ‘Affordable quality healthcare for all’. Recent launch of national diagnostics programme including tele-radiology and CT scan facility in public hospitals, national dialysis programme, and a plethora of such pro-public initiatives, are creating the right balance of access, supply and partnerships required for a bubbling healthcare eco-system. We are striving now to achieve a right balance between involvement of public health institutions in core clinical activities and undertaking strategic purchasing of non-core clinical functions such as equipment maintenance.
- Advertisement -
Comments are closed.