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Hans India
22-07-2025
- Business
- Hans India
Rise of Tier-2 cities in India's life sciences GCC playbook
By 2030, GCCs in healthcare, life sciences sectors will increase to 160 centres from 100 now India's Global Capability Centers (GCCs) have steadily evolved from cost-saving outposts to critical infrastructure in the global healthcare value chain. Nowhere is this transformation more evident than in the life sciences and healthcare (LSHC) sector - where digital health, regulatory services, and AI-enabled analytics are increasingly being delivered not just from India's metros, but from cities once considered peripheral to the innovation map. Tier-2 cities are not merely absorbing overflow. They are actively stepping into the spotlight. Today, India hosts over 100 LSHC GCCs, employing more than 280,000 professionals. By 2030, that number is expected to reach 160 centers and over 420,000 employees. The shift underway is not just quantitative. It is geographic. And strategic as well. 'Tier-2 cities are emerging as ideal candidates for housing next-generation LSHC GCCs,' Ritu Baliya, Associate Director – Strategy, Healthark Insights, told The Hans India. 'Strong policy support, sector-specific academic pipelines, and improving infrastructure are enabling global enterprises to expand with confidence - not just at lower cost, but with greater long-term alignment'. Ritu Baliya, with over 10 years of experience, has been advising life sciences and healthcare clients worldwide on strategy and market insights. She also supports the growth of Global Capability Centers by helping organizations tap into India's evolving innovation and talent ecosystem. From Kochi to Warangal, Vadodara to Coimbatore, a new network of cities is rewriting the operational map for life sciences capability. These urban centers are now offering what once only metros could: talent continuity, access to clinical and regulatory institutions, and robust digital infrastructure. Importantly, they are doing so with lower attrition, higher workforce stability, and sharper sectoral focus. State governments have accelerated this trend by moving from generic IT policies to GCC-specific blueprints. Telangana, already a recognized tech leader, is seeing growing GCC activity in Warangal, Karimnagar, and Nizamabad, building on Hyderabad's momentum. As per ANSR's Q4'23 GCC report, 3 of 14 new GCCs and 7 of 29 expansions in India occurred in Telangana alone. This momentum is not accidental. With commercial property rates and power tariffs lower than in states like Maharashtra and Karnataka, and a data center pipeline expected to grow from 44 MW in 2023 to 128 MW by 2026, the state is creating the right conditions for digital health operations to flourish. It also helps that Telangana has the highest percentage of employable youth (18–21 years) in India, according to the Wheebox National Employability Test. Andhra Pradesh, too, is moving with intent. The state is positioning Visakhapatnam as a strategic Tier-2 hub for LSHC GCCs by offering rental subsidies of`2,000 per seat for 24 months, power incentives for five years, and housing and education allowances of up to`1 lakh per employee. Combined with an affordable, trained talent pool and a growing appetite for public-private collaboration, AP's model is quietly gaining traction. In Gujarat, the state's life sciences backbone is being augmented with policy muscle. Gujarat's vision includes attracting 250 new GCCs, creating over 50,000 jobs, and securing Rs 10,000 crore in investments. GCCs operating in the state benefit from 100 per cent electricity duty waivers for five years, 80 per cent reimbursement of quality certification fees, and provident fund reimbursements - 100 per cent for female employees and 75 per cent for male employees. For companies operating in regulatory affairs, R&D, and clinical operations, Gujarat offers both capability and continuity. Tamil Nadu is driving a medtech and digital health GCC agenda with Rs 2,295 crore allocated toward expanding operations beyond Chennai. Coimbatore, Madurai, and Trichy are seeing early momentum as the state leverages its industrial legacy, IT base, and deep manufacturing ecosystem to attract global healthcare enterprises. Ongoing investments in IT parks and industrial corridors are reinforcing this long-term intent. Even states that were previously outside the GCC narrative are making credible plays. Uttar Pradesh, for instance, has introduced a targeted GCC policy aimed at channeling investment into Lucknow and Kanpur - home to premier institutions like CDRI and SGPGI. Companies setting up in eligible zones receive land subsidies of up to 50 per cent, 100 per cent stamp duty exemptions, and capital investment subsidies. With foundational infrastructure in place and a large workforce base, UP is building a research-oriented positioning that complements its demographic scale. The corporate response has been pragmatic - and increasingly bold. In Kochi, Aster DM Healthcare's Rs 850 crore investment reflects confidence in Kerala's strategic push toward high-impact healthcare. The Invest Kerala Global Summit has spotlighted Kochi's readiness for innovation-driven GCCs. In Coimbatore, firms are experimenting with digital twin models - simulating drug processes, piloting medtech innovations, and fine-tuning delivery strategies before global rollouts. Vadodara, long a stalwart of the pharmaceutical industry, is attracting attention from global players looking to scale regulatory and analytics capabilities outside saturated metros. And Warangal - powered by its proximity to Hyderabad, NIT-trained talent, and operational setups by LTI Mindtree and Genpact - is becoming a blueprint for how smaller cities can host enterprise-critical operations. 'The attractiveness of Tier-2 cities lies not just in cost arbitrage,' Baliya notes. 'It's in the growing belief that operational excellence and innovation maturity can be achieved outside traditional hubs - with the right partners, policies, and infrastructure.' This shift is more than a footnote in India's GCC evolution. It signals the emergence of a broader, more resilient ecosystem - one that supports diversification, accelerates hiring, and anchors capability where it's most scalable. For global life sciences companies, Tier-2 cities offer a rare trifecta: affordability, depth, and dependability. Importantly, this decentralization aligns closely with India's macroeconomic ambitions. As Telangana and other forward-looking states aspire toward the $1 trillion economy mark, the integration of Tier-2 cities into the global services grid isn't just an operational play - it's a national strategy. It widens the talent funnel, localizes innovation, and deepens India's relevance in global healthcare supply chains. As the healthcare industry becomes more data-intensive, digitally managed, and globally distributed, Tier-2 cities are no longer the second option. They are rising - with intent, with talent, and with a model that fits the future of healthcare delivery. (This article is jointly brought to you by World Trade Center Shamshabad & Future City and Healthark Insights, as part of a knowledge series supporting Telangana's aspiration to become a $1 trillion economy)
Associated Press
14-04-2025
- Business
- Associated Press
DHL Supply Chain strengthens Life Sciences & Healthcare infrastructure with new Pharma Hub in Singapore
SINGAPORE - Media OutReach Newswire - 14 April 2025 - DHL Supply Chain, the global leader in contract logistics, launched a new Pharma Hub in Singapore, a dedicated facility for pharmaceutical logistics. The €10 million facility is part of DHL Group's €500 million investment into Asia Pacific to bolster its Life Sciences and Healthcare (LSHC) infrastructure across all business units. DHL Supply Chain's new Pharma Hub in Singapore This strategic initiative reflects DHL Group's global focus on the healthcare sector as part of its Strategy 2030, which introduced the new 'DHL Health Logistics' sector brand to drive cross-divisional growth. The LSHC sector currently contributes EUR5 billion to DHL's global revenue, underscoring its significance in the Group's growth strategy. From left to right: Javier Bilbao (CEO, DHL Supply Chain APAC), Tobias Meyer (CEO, DHL Group), Eunis Hew (Managing Director, DHL Supply Chain Singapore), and Edwin Wong (CEO, DHL Supply Chain Southeast Asia) 'At DHL Supply Chain, we are committed to supporting the rapidly growing LSHC sector in Asia Pacific where there is a growing demand for transformative healthcare solutions due to longer lifespans, personalized treatments and rising consumer expectations. By 2030, the region's medical market is projected to reach USD138 billion (~€127 billion), reflecting the critical need for resilient and efficient supply chains. As part of DHL Group's Strategy 2030, we have invested ahead to strengthen our infrastructure and capabilities, ensuring we can meet the evolving and increasingly complex needs of our customers. Our investment goes beyond building warehouses or expanding networks. It is about building a foundation across all our business units that enables faster, more reliable delivery of life-saving medicines and healthcare products. In a region where healthcare demand is surging, we enable our customers to focus on innovation and patient care. At the same time, we handle the complexities of supply chain management across all logistics touchpoints - from storage, order fulfillment, and distribution to global shipping and last-mile delivery. This is how we deliver real value: by turning challenges into opportunities and ensuring that every link in the healthcare supply chain works seamlessly,' explained Javier Bilbao, CEO, DHL Supply Chain Asia Pacific. The new 8,200 square meters Pharma Hub at 8 Jurong Pier in Singapore features specialized temperature-controlled zones including ambient (15°C to 25°C) and cold room (2°C to 8°C), ensuring precise storage conditions for sensitive healthcare products. It is Good Manufacturing Practice (GMP) compliant with advanced cold chain infrastructure, including airtight loading docks and dedicated anterooms, ensures uninterrupted temperature stability throughout the logistics process. Future plans are in place to enable pharma related value-added services including redressing activities. Strategically located near Tuas Bio-Medical Park, the Pharma Hub offers seamless connectivity to Changi Airport and Tuas Mega Port, enabling efficient regional and global distribution for pharmaceutical partners. 'Singapore is laser-focused on becoming a global leader in life sciences and medtech innovation. The country's ambitions are backed by investments, such as a top-up of SGD$3 billion (~€2 billion) in Budget 2025 to attract investments in sectors like semiconductors and life sciences, as well as other key initiatives, including the National Research, Innovation and Enterprise (RIE). With the new Pharma Hub in Jurong, we have over 36,000 square meters of warehouse space in Singapore dedicated to LSHC operations. Our current operations include being the regional distribution centers for multiple medical device multi-nationals, clinical trials support and other value-added services,' said Eunis Hew, Managing Director, DHL Supply Chain Singapore. A successful LSHC supply chain requires several critical factors – robust warehouse infrastructure, skilled personnel and innovative solutions. Together, these elements enable DHL Supply Chain to meet the unique demands of the healthcare industry and deliver exceptional value to customers. Supporting growth with robust infrastructure Even before the recent announcement of DHL Group's €2 billion investment into the sector, DHL Supply Chain has already made strategic early investments in the region. These key projects, supporting the growing LSHC industry and helping customers navigate evolving demands, include: DHL Supply Chain's extensive network of Good Distribution Practice (GDP)/ GMP-compliant facilities, featuring specialized temperature zones, humidity control, and uninterrupted cold chain capabilities, ensures the integrity of sensitive products such as pharmaceuticals and medical devices. Its specialized logistics solutions, including multi-temperature storage, transport, and complex and customized white glove express delivery for extremely time- and temperature-sensitive deliveries, position it to address structural shifts in the LSHC market. Globally, DHL Group has announced an investment of €2 billion by 2030 to boost integrated healthcare solutions. It also recently acquired CRYOPDP, a specialty courier providing end-to-end temperature-controlled solutions and white-glove services designed for the LSHC industry. Skilled personnel with the right expertise to navigate complexities Many pharmaceutical products require strict temperature control during storage and transportation, as well as adherence to stringent LSHC industry regulations. Skilled personnel are crucial in managing cold chain logistics, ensuring products remain within specified temperature ranges to maintain efficacy and safety. These professionals also navigate complex regulations and ensure compliance with local and international laws governing the storage, handling, and transportation of medical products. With over 2,600 healthcare logistics experts and more than 40 full-time pharmacists in Asia Pacific, DHL Supply Chain manages the complexities of healthcare logistics for its customers. From regulatory compliance to proper product handling, DHL Supply Chain's trained team ensures that every step of the supply chain operates seamlessly and efficiently. Innovative solutions to drive efficiency and resilience Innovation is at the heart of DHL Supply Chain's LSHC operations. DHL drives efficiency and enables proactive decision-making by integrating automation, robotics, and AI-powered tracking systems into its operations. For example: By continuously investing in innovative solutions, DHL Supply Chain ensures its operations are equipped to meet the evolving needs of the healthcare sector, from research and development to patient delivery. 'Modern healthcare depends on more than just a physician's expertise. It requires scale, connectivity, and constant collaboration between manufacturers, researchers and medical experts worldwide. Healthcare can only work if its logistics do too,' Bilbao added. With the investments in new additions and expanded capabilities, DHL Supply Chain will operate over 80 facilities with over 700,000 square meters of fully compliant warehousing space in 13 countries across Asia Pacific. Hashtag: #DHL The issuer is solely responsible for the content of this announcement. DHL – The logistics company for the world
