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Gujarat Medical Device Industry : Moving Up in Value &
Technology Chain
As is already highlighted in one of the earlier articles,
Gujarat State has the largest number of licenced Medical
Device companies in India with wide ranging products from
common hospital disposables to most critical
cardio-vascular devices.
History:
The industry in Gujarat originated with the I. V. Fluid
manufacturing industry in the 1970s followed by
manufacturing of common medical disposables products like
I.V. Sets as well as catheters like suction and urethral
catheters. The manufacturing of these products was
facilitated by easy availability of basic plastic
materials as well as plastic processing machineries in
Gujarat.
Gujarat state is already known for strong entrepreneurial
characteristics of the people and also the government and
bureaucratic system. And hence with the exposure to the
new business opportunity, number of small companies
manufacturing I.V. sets and related products started
coming one after the another. This resulted in Gujarat
state companies manufacturing almost 90% of the low end
common medical disposables in India. However, these
products were not covered under any drug law as well as
the entrepreneurs also did not have the back ground and
understanding of requirements for medical device sector.
With the covering of I.V. sets, needles and some other
products under the food and drug control requirements, the
medical device industry in Gujarat entered in a transition
stage facing many challenges both for the manufacturing as
well as quality requirements.
Around this time, UNIDO initiated a cluster development
program for the pharmaceutical units in Gujarat which was
extended to the medical device industry also. This program
was carried forward by Foundation of MSME Clusters (FMC).
At the suggestion of the Ministry of Small Scale
Industries, Government of India, the United Nations
Industrial Development Organisation (UNIDO) conceptualized
and initiated the process of creating the Foundation for
MSME Clusters. Subsequently, the Foundation was legally
constituted as a non-government, non-profit registered
trust under the auspices of the Entrepreneurship
Development Institute of India (EDI), Ahmedabad, in the
year 2005.
Gujarat Medical Device Industry Cluster Support Program
By UNIDO : A Unique Success Story.
The SME Medical Device units of Ahmedabad/Vadodara faced a
major challenge in achieving the stricter quality norms
increasingly demanded by the Indian regulatory authority
as well as by large-scale units, which can be their
potential clients. This is because, in order to attain
quality certifications the small firms often lack the
required information, appropriate technical training,
knowledge of desired plant layout/machinery requirements
and were not able to locate affordable Business
Development Service ( BDS ) providers to organize such
activities.
The programme addressed these challenges in a step-bystep
approach by building awareness among firms, sustaining a
group approach to purchase of business development service
(BDS), creating institutional linkages and finally
building the capacity of existing and newly created
associations to ensure the sustainability of the process.
The major problems faced by the cluster at the beginning
of the intervention were:
i. Need for quality up-gradation
ii. Need of manpower training
iii. Business linkage through new channels
iv. Strengthening of institutional linkages
Implementation Strategy
The above problems were addressed in a step-by-step
approach by creating awareness among firms, building
consensus on group approach, organizing institutional
linkages and building capacity of the associations.
In these interventions , industry association , “Medical
Disposables Manufacturers’ Association,” ( MDMA ) , played
a special role in disseminating a new vision for the
cluster, which initially contributed significantly to
ice-breaking and later triggered multiplication of
initiatives; technical institutions provided training
inputs; private BDS providers propped up confidence by
securing business orders; and financial institutions
provided financial support to the various activities. All
these initiative where coordinated by the UNIDO
methodology that triggered a proactive mentality and a
growing dialogue among the various cluster actors.
As a result of these initiatives large number of units in
Gujarat embarked on quality up-gradation, many of them
made an investments varying from Rs 5 to 50 lakhs. New BDS
providers were introduced in the areas of quality, factory
level training, contract business, export market and other
support services. The program created or strengthened
linkages with technical/developmental institutions like
PERD, CIPET, SIDBI, GITCO, SIDBI, SISI, etc. International
networking has been undertaken with development agencies
like CBI and NMCP.
Strong Supply Chain Industry :
Parallel to the growth of the medical device industry,
number of supply chain and ancillary units also started
growing. At present there are more than 150 small and big
companies manufacturing important inputs starting from
basic raw materials to components, subassemblies,
manufacturing / testing / sterilization and other
machineries. The UNIDO program also supported number of
service providers to focus on this sector.
Moving To The High End Technology Products:
With the passage of time, as the medical device industry
sector became visible, manufacturing of relatively high
investment as well as high technology critical care
medical device products started in Gujarat with
investments ranging from few crores to few hundred crores.
With more and more products getting covered under drug
licensing, the span of the industry also started widening
. This is further supported by the presence of large scale
engineering units in the state as well as support by the
state and central governments in establishment of
industrial infrastructure as well as research institutes
like NIPER.
The wide range of manufacturing of medical devices include
products like :
• Orthopedic Implants
• Ophthalmic Implants / Products
• Diagnostic Products
• Cardiology Implants / Products
• Surgical Instruments / Accessories
• Bandages And wound care products
• Non-woven and medical textiles
• Dental Implants / Products
• Electro-Medical Equipments
• Medical Electronics Equipments
These units are supported and serviced by manufacturers /
companies across the value chain
• Packaging Materials For Medical Devices And
Pharmaceuticals
• Plastics Raw Materials / Components (Injection moulded /
extruded) Laboratory Supplies
• Services including: Testing / Sterilization /
Calibration /Validation / Quality Certification / Product
Developments / R & D / Man Power Training etc.
• Engineering Services including : Surface Treatments /
Coating / Electrical Mechanical Maintenance
Catalytic Role By Gujarat FDCA
From the beginning to the current stage of development,
the role of Gujarat FDCA has been exemplary. It has
remained more a guiding and motivation force all through
out the growth of medical device companies in Gujarat.
With many innovative initiatives like E-Governance the
Gujarat FDCA has won even many awards not only in India
but from international agencies like WHO, Bill and Melinda
Foundation etc. Many of these initiatives by Gujarat FDCA
have been replicated by various leading states in the
country.
(Ref: Chronicle Pharmabiz, Sept. 01, 2016. The Author
is Editor & CEO, Medical Plastics Data Service) |
