Why Are So Many Listed Pharma Companies Like Dr. Reddy’s Headquartered in Hyderabad?
India’s pharmaceutical industry has developed strong regional clusters, with Hyderabad emerging as one of the country’s key hubs. The city has attracted pharma companies due to its manufacturing ecosystem, research infrastructure, skilled workforce and supportive government policies.
Telangana’s $50 Billion Life Sciences Ecosystem
Telangana has established itself as a major pharmaceutical and life sciences hub, with more than 600 pharma and 200 biotech companies having a combined value of around $50 billion, which is expected to reach $100 billion by 2028.
The state is home to Genome Valley, India’s first and largest life sciences cluster, and Hyderabad contributes significantly to India’s vaccine manufacturing, with around 1 in 3 vaccines exported globally from India being manufactured in the city. The ecosystem is further supported by state-sponsored skill development programmes and healthcare infrastructure comprising around 50 public and 165 private hospitals, 4,000 clinics and nursing homes, and 500 diagnostic centres.
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Telangana Life Sciences Policy 2015–2020
The Telangana Life Sciences Policy 2015–2020 was introduced to strengthen the state’s position as a global destination for pharmaceutical, biotechnology and life sciences investments. The policy focused on improving infrastructure, encouraging research and development, supporting skill development and attracting investments across the life sciences value chain. Building on this ecosystem, the Telangana government is developing Hyderabad Pharma City across 14,000 acres, located around 25 km from Hyderabad International Airport, with planned infrastructure for R&D and manufacturing units.
Government Support and Industry-Friendly Policies
The Telangana government has been proactive in encouraging the development of the pharmaceutical and life sciences industry through specific policies, industry clusters, and infrastructure. It formulated its Next-Gen Life Sciences Policy for the years 2026-30 that aims to attract investments worth US$25 billion and generate 5 lakh jobs.
This policy has also been concerned with the expansion of Genome Valley, Pharma Villages, Medical Devices Park, Green Pharma City, and bio-manufacturing clusters.
Genome Valley is one of the strongest examples of government-backed infrastructure for the sector. The Telangana government has expanded the cluster and announced further development, including a 300-acre Phase II. The objective is to provide companies with specialised infrastructure for pharmaceutical and biotechnology research, manufacturing and innovation.
Faster Approvals and Investment Support
The new policy also stresses ease of doing business, which includes getting time-bound approvals through TG-iPASS and supporting start-ups, MSMEs, and foreign investors. In addition to that, the government has made an announcement that it will be providing infrastructural facilities, incentives, and approvals to those companies investing in areas like pharmaceuticals and biotechnology.
Government support is increasingly shifting beyond traditional pharma manufacturing toward biologics, biosimilars, precision medicine, advanced biomanufacturing, clinical research and digital health. The state plans to expand R&D infrastructure and create centres of excellence, which could help Hyderabad retain its position as a pharmaceutical and life-sciences hub.
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The combination of government-backed infrastructure, skilled talent, established pharmaceutical companies, API manufacturing capabilities and research institutions has created a strong cluster effect. As more companies set up operations, the availability of suppliers, employees and specialised services increases, making Hyderabad an increasingly established base for pharmaceutical companies. Below are the listed pharma stocks headquartered in Hyderabad, Telangana, spanning generics, APIs, injectables, CDMO and specialty pharmaceuticals.
Dr. Reddy’s Laboratories Ltd
Dr. Reddy’s Laboratories is a Hyderabad-based multinational pharmaceutical company involved in generics, APIs, biosimilars, and innovative drugs. Its presence is significant in India, the US, Europe, and international markets, and its major therapeutic classes are gastrointestinal, cardiovascular, oncology, and pain.
With a market capitalisation of Rs. 1,01,709 cr, the shares of Dr. Reddy’s Laboratories Ltd were trading at Rs. 1218.60 per share, down from its previous close of Rs. 1,236 per share.
Aurobindo Pharma Ltd
Aurobindo Pharma is a Hyderabad-based pharmaceutical company with its main focus on generic drugs and APIs. It has a presence in the US and European markets and is involved in antibiotic, antiretroviral, cardiovascular, and central nervous system drugs.
With a market capitalisation of Rs. 97,020 cr, the shares of Aurobindo Pharma Ltd were trading at Rs. 1686.20 per share, up from its previous close of Rs. 1,666.50 per share.
Divis Laboratories Ltd
Divi’s Laboratories is a Hyderabad-based pharmaceutical company that specialises in API, intermediates, and custom synthesis for multinational pharmaceutical companies. It has manufacturing facilities in Telangana and Andhra Pradesh.
With a market capitalisation of Rs. 2,44,815 cr, the shares of Divis Laboratories Ltd were trading at Rs. 9222 per share, down from its previous close of Rs. 9,282 per share.
Natco Pharma Ltd
Natco Pharma is a Hyderabad-based pharmaceutical company dealing with complex generics, specialty drugs and APIs. The company has a strong presence in sectors like oncology, hepatitis and cardiovascular therapies, where the US is one of the major markets for its products.
With a market capitalisation of Rs. 16,025 cr, the shares of Natco Pharma Ltd were trading at Rs. 816.95 per share, down from its previous close of Rs. 820.20 per share.
Laurus Labs Ltd
Laurus Labs is a Hyderabad-based pharmaceutical company that deals in APIs, generic formulations, CDMO services and biotechnology. The company has always had a strong presence in antiretroviral APIs and formulations and it has been making forays into oncology, specialty products and contract manufacturing.
With a market capitalisation of Rs. 1,07,405 cr, the shares of Laurus Labs Ltd were trading at Rs. 1987.85 per share, up from its previous close of Rs. 1,981.60 per share.
Granules India Ltd
Granules India is a Hyderabad-based integrated pharmaceutical company which deals in APIs, Pharmaceutical Formulation Intermediates (PFI) and finished dosage formulations. The portfolio of the company includes various medications like Paracetamol, Metformin and Ibuprofen.
With a market capitalisation of Rs. 20,839 cr, the shares of Granules India Ltd were trading at Rs. 841 per share, down from its previous close of Rs. 847.35 per share.
Gland Pharma Ltd
Gland Pharma is a Hyderabad-based company that deals in injectable formulations and contract manufacturing. The company specialises in complex injectables and operates in segments like oncology, anti-infectives, ophthalmology and many others, where the company derives the majority of its revenues from overseas markets.
With a market capitalisation of Rs. 47,853 cr, the shares of Gland Pharma Ltd were trading at Rs. 2900 per share, down from its previous close of Rs. 2,904 per share.
Neuland Laboratories Ltd
Neuland Laboratories is a Hyderabad-based pharmaceutical company that specialises in API and CDMOs. It collaborates with various global pharmaceutical and biotechnology firms and deals with complex molecules, niche APIs, and customised manufacturing solutions.
With a market capitalisation of Rs. 26,814 cr, the shares of Neuland Laboratories Ltd were trading at Rs. 20900 per share, down from its previous close of Rs. 21,392.65 per share.
Conclusion
Hyderabad’s position as a pharmaceutical hub has been supported by government initiatives, specialised infrastructure, skilled talent, strong API and manufacturing capabilities, and a well-developed life-sciences ecosystem. The presence of several listed companies such as Dr. Reddy’s Laboratories, Aurobindo Pharma, Divi’s Laboratories and others highlights the city’s importance in India’s pharma industry.