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**Hyderabad Pharma Plant Explosion Kills 39, Highlights Safety Concerns in India’s Booming Sector**

**Hyderabad, India – July 6, 2025** – A devastating explosion at the Sigachi Industries pharmaceutical factory in Pashamylaram, on the outskirts of Hyderabad, has claimed the lives of 39 workers, reigniting concerns about safety standards and regulatory oversight in India’s rapidly expanding pharmaceutical industry. The explosion, which occurred on June 30th, flattened a three-story building at the site and has prompted a government investigation into the cause.

Sigachi Industries, a stock market-listed company, specializes in manufacturing microcrystalline cellulose, a refined wood pulp used as a non-reactive carrier in tablets. Initial investigations point to a “dust explosion,” likely caused by the ignition of fine cellulose powder. The company denies that it was a reactor explosion. A dust explosion is suspected, where dust in the air can be ignited.

Adding to the chaos, emergency responders faced challenges due to a lack of readily available information about the materials involved. Environmental display boards, mandated by pollution control boards, were missing crucial data, hindering effective firefighting and rescue efforts.

This incident is the latest in a string of serious accidents in Indian pharmaceutical firms, including deadly incidents in Sangareddy and Anakapalli in recent years. The tragedies raise serious questions about the enforcement of safety regulations in a sector that has become a major economic driver for states like Telangana, which accounts for a significant portion of India’s pharmaceutical production and exports.

While Telangana has attracted substantial investments in its life sciences sector, analysts warn that lax zoning and regulatory norms, particularly regarding industrial proximity to residential areas and wastewater management, contribute to heightened risks. Environmentalists have long documented the release of toxic chemicals and effluents into surrounding areas, leading to significant pollution of local water bodies.

The U.S. is one of the biggest markets for Indian medical exports that is regulated by the U.S. Food and Drug Administration (FDA). Lax practices could jeopardize access to critical markets and damage the country’s reputation.

Experts are calling for a robust overhaul of the regulatory framework to ensure stricter enforcement of safety standards, proper environmental safeguards, and improved transparency. Two books, The Truth Pill – The Myth of Drug Regulation in India and Bottle of Lies: Ranbaxy and the Dark Side of Indian Pharma, by Dinesh S. Thakur and Prashant Reddy T. and Katherine Eban respectively have chronicled the regulatory leeway, and documented the dangerous practices resorted to by Indian pharma firms to keep costs low and profit margins high. Without these changes, the human cost of India’s pharmaceutical boom may continue to rise, undermining the industry’s long-term sustainability and credibility.

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