Hyderabad Companies Must Focus on Innovation to Avoid Commoditisation, Panellists Say

Hyderabad, known for its thriving IT industry, needs to shift its focus from being a service-based economy to becoming a hub for research and innovation-driven products to stay competitive globally. According to panellists at a recent discussion, the city has the necessary talent, capital, and infrastructure to support larger companies, but a lack of product-focused businesses is hindering its growth.

Key Takeaways:

Hyderabad's focus on services has led to commoditisation, making it challenging for the city to remain competitive globally.
Companies like Bharat Biotech are working on novel products and vaccines, including cell and gene therapy, which could position the city as a leader in research and innovation.
Panellists agree that the city's growth is not solely dependent on Hyderabad, and the rest of Telangana needs to catch up and grow.
To become a leading launchpad for space-tech and hard-tech startups, Hyderabad needs advanced infrastructure, talent attraction, and local manufacturing of capital goods and machinery.
More unicorns from the city are expected to emerge in the next year or two, which will mark a significant shift towards product-based companies.

Statistics:

70% of Hyderbad's companies are focused on services, according to Rohit Chennamaneni, co-founder and CEO, Darwinbox.
Bharat Biotech is working on several novel products and vaccines, including ones that are considered a final frontier in medical research.
Hyderabad has the necessary talent, capital, and infrastructure to support larger companies, but is lacking in product-focused businesses.
The city needs to invest in advanced infrastructure, talent attraction, and local manufacturing of capital goods and machinery to become a leader in space-tech and hard-tech startups.

Sources:

"Industry@2047: Defining Hyderabad's Future of Work" panel discussion

+ Bharat Biotech

+ Darwinbox

+ Skyroot