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Sustainable Practices in Indian Pharma Manufacturing: A Step Towards Green Pharma

Oct 14, 2025

CDMO pharma companies

India’s pharmaceutical industry stands at the intersection of innovation, affordability, and responsibility. As one of the world’s largest producers of medicines, the country’s manufacturing sector significantly impacts not only healthcare but also the environment. With rising concerns about carbon emissions, chemical waste, and water usage, sustainability has become a defining factor in the evolution of Indian pharma.

In recent years, CDMO pharma companies in India (Contract Development and Manufacturing Organisations) have been playing a vital role in driving environmentally responsible manufacturing. These organisations, which provide end-to-end services—from drug formulation development to large-scale production—are increasingly adopting eco-friendly technologies and ethical business practices to create a more sustainable future.

This shift towards green pharma represents more than compliance; it reflects a transformation in values, strategy, and innovation.

The Need for Sustainability in Pharma Manufacturing

The pharmaceutical industry, by its nature, consumes vast resources and generates significant waste. The synthesis of active pharmaceutical ingredients (APIs) involves complex chemical processes that may release solvents, by-products, and residues. Similarly, formulation and packaging operations consume energy, water, and materials.

The global push towards carbon neutrality, alongside India’s own commitments under the Paris Agreement, has motivated the industry to embrace green manufacturing. Regulatory authorities and international partners now demand higher environmental accountability, pushing Indian companies to invest in cleaner technologies and sustainable supply chains.

Key drivers include:

  • Stringent environmental regulations under the Ministry of Environment and Pollution Control Boards.
  • Pressure from global clients requiring eco-compliant facilities.
  • Rising operational costs due to inefficient energy and water use.
  • Corporate reputation—sustainability has become an essential brand differentiator.

What Does Green Pharma Mean?

Green pharma” refers to the adoption of environmentally conscious practices across the entire pharmaceutical value chain—from R&D and raw material sourcing to manufacturing, packaging, and distribution.

Its primary objectives include:

  • Reducing carbon footprint.
  • Minimising waste generation.
  • Conserving energy and water.
  • Using renewable energy sources.
  • Implementing sustainable packaging and logistics.

In India, leading pharmaceutical manufacturers and CDMOs are demonstrating that sustainability and profitability can coexist when supported by innovation and commitment.

Key Sustainable Practices Adopted by Indian Pharma Manufacturers

1. Green Chemistry and Eco-Friendly Synthesis

Many Indian pharma manufacturers are shifting towards green chemistry principles, which aim to minimise the use of hazardous substances and reduce waste at the source.

Common approaches include:

  • Using safer solvents or solvent-free synthesis.
  • Employing catalytic instead of stoichiometric reactions to cut down reagent waste.
  • Recycling solvents and reagents wherever feasible.
  • Using biocatalysts and enzyme-based reactions for cleaner conversions.

For instance, several Indian companies have introduced enzyme-catalysed synthesis routes for APIs such as statins and antibiotics, significantly reducing toxic waste.

2. Energy Efficiency and Renewable Power

Energy consumption remains a major sustainability concern in pharma manufacturing, especially for heating, cooling, and sterilisation processes. Companies are now:

  • Installing energy-efficient HVAC systems and heat recovery mechanisms.
  • Using LED lighting and smart sensors to monitor energy use.
  • Investing in renewable energy sources such as solar and wind power.
  • Optimising process schedules to reduce electricity demand peaks.

Some Indian facilities have achieved up to 40% reductions in energy use through automation and real-time monitoring systems.

3. Water Conservation and Recycling

Water is essential in pharmaceutical operations for cleaning, formulation, and cooling. However, wastewater can carry residues of solvents, APIs, and other chemicals.

Sustainability leaders are tackling this issue by:

  • Implementing zero liquid discharge (ZLD) systems to ensure no untreated water leaves the premises.
  • Using reverse osmosis and multi-effect evaporators for water recycling.
  • Harvesting rainwater for non-potable applications.
  • Employing real-time monitoring to prevent leakage or wastage.

Hyderabad and Ahmedabad-based manufacturers have already adopted ZLD as a standard practice, setting a strong example for others.

4. Waste Management and Circular Economy

Solid waste, packaging waste, and expired raw materials are critical concerns. Green pharma focuses on reducing, reusing, and recycling wherever possible.

Indian pharma companies are:

  • Segregating waste at source (biological, chemical, and recyclable).
  • Partnering with authorised recyclers and waste-to-energy plants.
  • Adopting biodegradable packaging and paperless documentation.
  • Recovering solvents and reusing process water.

Circular economy initiatives, such as converting organic waste into compost or energy, are becoming common across modern facilities.

5. Sustainable Supply Chains

A sustainable manufacturing operation is only as green as its supply chain. Leading Indian firms are extending their sustainability policies to raw material suppliers, logistics partners, and distributors.

Key initiatives include:

  • Vendor audits focusing on environmental compliance.
  • Sourcing APIs and excipients from eco-certified suppliers.
  • Encouraging digital procurement and reducing paperwork.
  • Adopting electric or low-emission vehicles for distribution.

Such efforts ensure that environmental responsibility is embedded throughout the value chain rather than confined to factory walls.

6. Green Packaging Solutions

The pharma industry is increasingly switching to eco-friendly packaging materials. This not only reduces waste but also lowers costs in the long run.

Examples include:

  • Using recyclable aluminium and biodegradable plastics.
  • Designing lightweight blister packs to reduce material usage.
  • Implementing eco-labelling and digital tracking to reduce paper use.
  • Replacing PVC films with PET-based or bio-derived alternatives.

By adopting sustainable packaging, Indian pharma is reducing its ecological footprint while maintaining product safety and compliance.

7. Digitalisation and Smart Manufacturing

Digital technology plays a key role in enabling sustainable operations. Smart manufacturing systems, powered by IoT (Internet of Things) and AI, allow real-time data monitoring and predictive maintenance.

Benefits include:

  • Optimised production schedules, reducing idle energy consumption.
  • Early detection of leaks or deviations that could lead to waste.
  • Paperless operations and electronic record management.
  • Enhanced traceability, ensuring ethical sourcing and distribution.

Digital transformation aligns environmental responsibility with operational efficiency—an increasingly vital combination for global competitiveness.

Indian Companies Leading the Green Shift

While sustainability has become a shared goal, several Indian pharma companies have gone further to set benchmarks in green manufacturing:

1. Vasudha Life Science Pvt. Ltd.

  • An emerging CDMO player with WHO-GMP certified facilities.
  • Uses energy-efficient granulation and coating technology to reduce process emissions.
  • Implements water recycling systems and eco-friendly waste disposal methods.

2. Cipla

  • Implemented solar power projects across several plants.
  • Focuses on green packaging using recyclable materials.
  • Runs Cipla Green Pledge initiatives promoting energy conservation and biodiversity.

3. Sun Pharmaceutical Industries

  • Introduced waste heat recovery systems and rainwater harvesting.
  • Focused on solvent recovery and process optimisation to reduce emissions.

4. Biocon Ltd.

  • Adopts biotechnological processes that inherently generate less waste than traditional chemical synthesis.
  • Certified for ISO 14001 environmental management and OHSAS 18001 safety standards.

5. Dr. Reddy’s Laboratories

  • First Indian pharmaceutical company to publish a Sustainability Report as early as 2004.
  • Achieved over 20% reduction in greenhouse gas emissions through energy efficiency projects.
  • Operates multiple zero liquid discharge facilities and relies heavily on renewable power.

These examples show that sustainability is not limited to large corporations—it is equally achievable for small and mid-sized enterprises committed to responsible growth.

Challenges to Achieving Green Pharma

Despite progress, Indian pharma faces challenges in adopting full-scale sustainability:

  • High initial costs for installing renewable and zero-discharge systems.
  • Limited awareness among smaller manufacturers.
  • Technological gaps in adopting green chemistry across all APIs.
  • Inconsistent enforcement of environmental regulations at state levels.
  • Supply chain complexity, making it difficult to monitor third-party compliance.

Overcoming these obstacles requires policy support, financial incentives, and shared responsibility between industry, regulators, and consumers.

Government and Industry Initiatives

The Indian government and industry associations are working together to make sustainability more mainstream:

  • Pharma Vision 2020 includes provisions for cleaner manufacturing technologies.
  • The Central Pollution Control Board (CPCB) mandates effluent treatment and emission monitoring.
  • Green Chemistry Network Centre (GCNC) promotes academic-industry collaboration for eco-friendly R&D.
  • Pharmaceutical Export Promotion Council (Pharmexcil) encourages sustainability reporting for exporters.

In addition, international clients increasingly demand ESG (Environmental, Social and Governance) compliance, making sustainability a business necessity rather than an option.

The Road Ahead: A Greener Future for Indian Pharma

Sustainability in pharma manufacturing is no longer a niche concept—it is the new industry standard. The integration of green chemistry, renewable energy, and digital technologies is shaping a more responsible and resilient industry.

Indian manufacturers are recognising that environmentally conscious operations not only protect the planet but also enhance brand reputation, attract global partnerships, and improve long-term profitability.

As more companies follow the examples set by pioneers like Vasudha Life Science, Dr. Reddy’s, Cipla and Biocon the Indian pharmaceutical industry is steadily transitioning from compliance-driven to purpose-driven sustainability.

Conclusion

The journey towards sustainable pharmaceutical manufacturing in India represents a vital step in balancing industrial growth with ecological responsibility. From zero liquid discharge plants to renewable energy adoption, the industry is steadily redefining its relationship with the environment.

By prioritising innovation, transparency, and long-term impact, the nation’s manufacturers—and especially its top CDMO companies in India—are proving that sustainability can indeed coexist with scientific and economic excellence. The future of Indian pharma is not just about healing people; it is about healing the planet too.

Frequently Asked Questions (FAQs)

  1. What does “green pharma” mean?
    Green pharma refers to environmentally sustainable practices in pharmaceutical research, manufacturing, and distribution. It involves reducing waste, minimising pollution, conserving resources, and adopting eco-friendly technologies to make drug production safer for the planet.
  2. Why is sustainability important in pharmaceutical manufacturing?
    Pharma manufacturing uses chemicals, water, and energy on a large scale. Sustainable practices help reduce environmental impact, protect ecosystems, and ensure long-term resource availability while maintaining product quality and compliance with global regulations.
  3. What are some examples of sustainable practices in the pharma industry?
    Common sustainable practices include energy-efficient operations, renewable power use, waste recycling, zero liquid discharge (ZLD) systems, green chemistry, biodegradable packaging, and digital monitoring for reduced resource consumption.
  4. How are Indian pharmaceutical companies contributing to sustainability?
    Indian pharmaceutical companies are investing in cleaner technologies, installing renewable energy systems, adopting green chemistry, and improving wastewater management. Many firms are also aligning with global ESG (Environmental, Social, and Governance) standards to ensure responsible manufacturing.
  5. What is the future of sustainable pharma manufacturing in India?
    The future will see wider adoption of renewable energy, advanced waste treatment systems, and eco-friendly supply chains. Collaboration between industry, government, and research institutions will further strengthen India’s leadership in green and ethical pharmaceutical production.