Indian Pharmaceutical Sector Analysis
* Market Size & Growth Rates
* Market Segmentation
* Key Players in Pharma Industry
* Market Drivers
* Challenges for Pharma Industry
* SWOT Analysis
Indian Pharmaceutical Industry is one of the success stories of modern India. The wide ranging capabilities in the complex field of drug manufacture & technology has established India as one of the major producer of the Pharmaceuticals worldwide. De-licensing of the pharmaceutical industry gave freedom to Indian Pharma manufacturers to produce any drug without Industrial licensing. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 12 billion, growing at about 12-13 percent annually. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. The industry is mostly based on allopathic medicines. There are about 250 large units and about 20000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. The allopathic medicine industry consists of big players like Dr. Reddy’s, GSK, Pfizer, Ranbaxy and a lot of smaller players. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market. In the analysis of Indian Pharmaceutical Industry, we will start with current market size and growth rates of the industry. We will further discuss on market segmentation based on various factors and key Pharma players in the Industry. Then, major drivers & challenges for the Pharma Industry will be analysed. Finally SWOT analysis of the Industry will provide overview of the sector.
Market Size & Growth rates: (1)
India's pharmaceutical industry is now the third largest in the world in terms of volume and 14th in terms of value. According to data published by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, total turnover of India's pharmaceuticals industry between September 2008 and September 2009 was US$ 21.04 billion. Of this the domestic market was worth US$ 12.3 billion. By 2015, India is expected to rank among the top 10 global pharmaceutical markets. The industry is typically growing at around 1.5-1.6 times the country's gross domestic product (GDP) growth. The increasing population of the higher-income group in the country will, by 2015, open a potential US$ 8 billion market for multinational companies selling costly drugs. Besides, the report said the domestic pharma market is likely to touch US$ 20 billion by 2015, making India a lucrative destination for clinical trials for global giants. Exports:
Export of pharmaceutical products from India increased from US$ 6.23 billion in 2006-07 to US$ 7.74 billion in 2007-08 and to US$ 7.81 billion in 2008-09, according to Minister of State for Commerce. Pharmaceutical exports from the country have recorded growth rates of 21.61 per cent, 14.37 per cent and 28.54 cent, respectively, in the three consecutive years of 2006-07, 2007-08 and 2008-09. Growth:
The domestic pharma market will outshine the global market, growing at a compounded annual rate of 12-15 per cent as against a global average of 4-7 per cent during 2008-2013, according to a study by...
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