pharmaceutical industries

1. PHARMACEUTICAL
INDUSTRIES
SUBMITTED BY:-
RISHABH SHARMA
II SEM

2. OBJECTIVES OF MY STUDY ON
PHARMACEUTICAL
 Know the current scenario of
pharmaceutical industry.
Know the working of the pharmaceutical
industry.
To know about their distribution channel.

3. OVERVIEW OF PHARMACEUTICAL INDUSTRY
1.1 INTRODUCTION
The pharmaceutical industry is the world’s largest industry due to worldwide
revenues of approximately US$2.8 trillion.
The Indian pharmaceuticals market is the third largest in terms of
volume and thirteenth largest in terms of value, as per a report by
Equity Master. India is the largest provider of generic drugs globally
with the Indian generics accounting for 20 per cent of global
EXPORTS.
The Indian pharmaceutical sector is highly fragmented with more
than 21,000 registered Units. It has expanded drastically in last 2
decades.
Presently over 80 per cent of the antiretroviral drugs used globally to combat
AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian
pharmaceutical firms.

4. 1.2 Market Size
The Indian pharma industry, which is expected to grow over 15 per cent per
annum between 2015 and 2020, will outperform the global pharma industry,
which is set to grow at an annual rate of 5 per cent between the same periods.
The market is expected to grow to US$ 55 billion by 2020, thereby emerging as
the sixth largest pharmaceutical market globally by absolute size, as stated by
Mr. Arun Singh, Indian Ambassador to the US. Branded generics dominate the
pharmaceuticals market, constituting nearly 80 per cent of the market share (in
terms of revenues).

5. 1.3 The India pharmaceutical Exports:
1.3.a The Growth Story
While India continues to be a major exporter of generic to traditional markets such
as US, UK, Russia, etc, it is also increasing its reach to other nations like Canada,
Germany, Brazil, Japan, etc
The India pharmaceutical industry is the largest supplier of cost effective generic
medicines to the developed world.
India Exports of Pharmaceutical Products 1996-2017 | Data

7. •1.4 Advantages in India
•The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide
range of specialties involving complex drugs manufacture, development, and
technology. Pharmaceutical companies in India are growing at the rate of 4.5 billion,
registering further growth of 8-9% annually.
•The reports say that 250 leading Indian pharmaceutical companies control 70% of the
market.
India has a pool of personnel with high managerial and technical
competence as also skilled workforce.
•Its track record of development, particularly in the area of improved cost-beneficial
chemical synthesis for various drug molecules is excellent. It provides a wide variety of
bulk drugs and exports sophisticated bulk drugs.
India has a solid legal framework and strong financial markets.

8. Company Name Sales in INR billion
Cipla 69.77
Ranbaxy Lab 76.86
Dr Reddy’s Labs 66.86
Sun Pharma 40.15
Lupin Ltd 53.64
Aurobindo Pharma 42.84
Jubilant Life 26.41
Cadila Health 31.52
Ipca Labs 23.52
Wockhardt 26.50
2. MAJOR PHARMACEUTICAL COMPANIES IN INDIA
2.1Some of the leading Indian players by sales (INR Billion)

10. 2.2 LOCATION OF PHARMACEUTICAL INDUSTRY IN INDIA

11. UNIT 1
PRODUCTION OF MEDICINES
UNIT 2
Now Empty
3. FINDINGS
Cipla: Cipla was founded by khwaja Abdul Hamied in 1935 and was known as The Chemical,
Industrial and Pharmaceutical Laboratories, through it is better known by the acronym Cipla Today.
Cipla was registered in august, 1935 as a public limited enterprise and it began with an authorized
capital of Rs 6 lakh.
Through set up in 1935, it was only in 1937 that Cipla also has an extensive export market and
regularly exports to more than 150 countries in regions such as North America, South American, Asia,
Europe, Middle East, Australia, and Africa. For the year ended 31st March, 2007 Cipla’s exports were
worth approximately Rs 17,500 million. Cipla is also considerably well known for its technological
innovation and processes for which the company received know-how loyalties to the tune of Rs. 750
million during 2006-07.
HEADQUATER: MUMBAI
KEY PEOPLE: Y.K Hamied, chairman
Umang Vohra, (CEO)
PRODUCTS: Pharmaceuticals and Diagnostic.
EMPLOYEES: 22,036
3.1CIPLA BADDI PLANT

12. ENGINEERING
(PLANNER)
STORE
(PLANNER)
PRODUCTION
(PLANNER)
PACKING
(PLANNER)
QUALITY
ASSURANCE
QUALITY
CONROL
HR DEPARTMENT
MARKETING
DEPARTMENT DEP
OT
MARKE
T
SUPPLY

13. PRODUCTION
GRANULATION
COMPFRESSION
COATING

14. NATIONAL SALES
MANAGER
ZONAL SALES
MANAGER
REGIONAL SALES
MANAGER
AREA SALES
MANAGER
ORGANISATION
STRUCTURE
CEO
MR (MAKETING
EXECUTIVE),(MARKITING
REPERSENTATOR
AROMED STORE
C&F(Carry and
Forward)AGENTS
STOCKIST/WHOLESALE
R
RETAILOR
CONSUMER
CIPLA ,
RANBAXY,LU
PIN, SUN
PHARMA

15. CHAPTER 4
Government initiatives in the industry
The government has taken various policy initiatives for this industry:
The government is planning to set up Rs 1000 crore venture capital funds to boost
domestic pharma industry and provide cheaper loans to entities looking to establish or
upgrade manufacturing facilities. The government is working on various proposals,
including single win clearance for drug approvals, to rejuvenate the local pharma sector
and make medicines more affordable.
In order to promote the pharmaceuticals manufacturing, the government is set to
approve six pharma parks this year at an estimated investment of Rs 180 crore, which
will have sufficient infrastructure and facilities for testing and treatment of drugs and
also for imparting training to industry professionals.
The Government of India plans to set up around eight mini drug-testing laboratories
across major ports and airports in the country, which is expected to improve the drug
regulatory system and infrastructure facilities by monitoring the standards of imported
and exported drugs and reduce the overall time spent on quality assessment.
India is expected to rank among the top five global pharmaceutical innovation hubs by
2020, based on Government of India's decision to allow 50 per cent public funding in
the pharmaceuticals sector through its Public Private Partnership (PPP) model.

16. Investments
The Union Cabinet has given its nod for the amendment of the existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100
per cent under the automatic route for manufacturing of medical devices subject to
certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth
US$ 13.85 billion between April 2000 and March 2016, according to data
released by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments in the Indian pharmaceutical sector are as follows:
•India’s largest drug maker Sun Pharmaceutical Industries Limited has entered into a
distribution agreement with Japan's Mitsubishi Tanabe Pharma Corporation to market 14
prescription brands in Japan.
•Lupin Ltd plans to acquire a portfolio of 21 generic brands from Japan-based Shionogi & Co Ltd
for Rs 10.08 billion (US$ 150.3 million), which will help to strengthen its presence in the world’s
second largest pharmaceutical market.
•International Finance Corporation (IFC), the investment arm of the World Bank, plans to invest
upto US$ 75 million in Glenmark, which is looking to raise around US$ 200 million for expansion
and the launch of several new products in India and other emerging markets over the next three
years.

17. •Cipla Limited plans to invest around Rs 600 crore (US$ 89.47 million) to set up a
biosimilar manufacturing facility in South Africa for making affordable cancer drugs
and growing its presence in the market.
Cipla Ltd, one of the major pharmaceutical and biotechnology
companies in India, has acquired two US-based generic drug
makers, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals
Inc., for US$ 550 million, which is expected to strengthen Cipla's US
business.

18. CHAPTER 5
INDUSTRY CHALLENGES
Tomorrow’s challenge is to develop new medicines that can prevent or cure currently incurable
diseases. Today’s challenge is to get to tomorrow – and that’s a tall order in itself.
Rising customer expectations: The commercial environment is getting harsher, as healthcare
payers impose new cost constraints on healthcare providers and scrutinize the value medicines
offer much more carefully. They want new therapies that are clinically and economically better than
the existing alternatives, together with hard, real-world outcomes data to back any claims about a
medicine’s superiority.
Highly fragmented industry:
The Indian pharma industry is highly fragmented. The market is overloaded with generic manufacturers.
Low margin of profits due to government pricing policies – Drug Price Control Order
The main issue raised by most of the pharma companies is that the profits which they earn are
basically peanuts and this income is not sufficient enough. The companies sight that the reforms of
the Government for the essential medicines has caused them to lower the price of drugs. This has
been done by the Government for the betterment of the public. So the Government has to think of
a way to promote the pharma companies as well. Funding for the pharma companies might be a
way to move forward.
Low input for research and development due to pricing norms
The above mentioned challenge directly affects the R&D of the companies.
Why?
Simple enough answer, the lower the profits for the companies, the lower the investments. So the
companies sight that due to the low income they are not able to develop products the way they
want.

19. BIBLIOGRAPHY
1 http://www.business-standard.com/content/b2b-pharma/indian-
pharmaceutical-exports-the-growth-story-116010600140_1.html
2 http://www.livemint.com/Politics/g0vsJg1hoVWJQ7qyBf7WmI/India-
continues-to-lead-China-in-pharma-exports.html
BUSINESS STANDARD