The document discusses the Indian pharmaceutical industry. It provides an overview of major players, the Indian and global scenarios, future outlook, and areas for boosting competitiveness. The industry has grown significantly over time and India is now a top producer and exporter of generic drugs globally. The outlook remains positive with the market expected to reach $74 billion by 2020 and become one of the top ten markets worldwide. However, further investment in R&D and addressing regulatory issues can help strengthen the industry.

1. Pharma Industry

2. Agenda :
 Introduction
 Major player
 SWOT
 Indian Scenario
 Global Scenario
 Future outlook
 Conclusion

3. Introduction
 In 1930, in Calcutta the first pharmaceutical company called Bengal
Chemicals and Pharmaceutical Works, which still is today as one of 5
government-owned drug manufacturers was started.
 The history of Indian pharmaceutical market in 1970's was almost non-
existent. Today, India has gained immense importance and carved a
niche for itself in the pharmaceutical domain. In fact, it has emerged as
a big mart for the pharmaceutical industry.
 Formulations, bulk drugs, generics, Novel Drug Delivery Systems, New
Chemical Entities, or Biotechnology, etc. Indian companies are
dominating in the marketplace which was traditionally manned by
MNC.

4. Contd..
 India is the third largest player in the world with 500 different APIs
and ranks fourth globally in terms of production volumes, and 13th
globally in domestic consumption value.

5. Indian Pharmaceutical Evolution

6. Production And Distribution Cycle

7. Major Players
Company M-Cap (₹ Weight (%)
cr.)
Sun Pharma 85130.01 23.42
Dr. Reddy L 30644.44 8.43
Cipla 29740.21 8.18
Lupin 27320.00 7.51
Ranbaxy L. 18352.15 5.05
Glaxo Smith 17802.46 4.89
CadilaHealth 15857.77 4.36
Glenmark 13782.21 3.79
Piramal Ent. 9812.80 2.71
Dated: 25-02-2013
Total M-Cap= 3,63,398.12 Cr.

8. SWOT Analysis

9. Indian Scenario
 India is now among the top five pharmaceutical emerging markets, Pharmaceutical
industry contributed 1.71% of GDP in 2011.
 Domestic formulation market stood at Rs 58,300 crore (US$ 10.88 billion) and has been
ranked third in terms of volume and tenth in terms of value, globally.
 The country is the largest exporter globally of generic formulations in volume.
 The growing size of the Indian geriatric population will be a key factor in influencing the
growth of the chronic segment.
 The Indian population is experiencing a shift in disease profiles. Traditionally, the acute
disease segment held a significant share of the Indian pharmaceutical market.
 The varied functions such as contract research and manufacturing, clinical research,
research and development pertaining to vaccines are the strengths of the Pharma
Industry in India. Multinational pharmaceutical corporations outsource these activities
and help the growth of the sector. The Indian Pharmaceutical Industry has a bright
future.

11. Global Scenario
 The Indian Pharmaceutical Industry is one of fastest emerging
international center for contract research and manufacturing services
or CRAMS.
 The main factors for the growth of the CRAMS is due to the
international standard quality and low cost.
 US constitutes 27 percent of India's pharma exports, followed by
Europe 19 percent, Africa 17 percent, Middle East seven percent, Latin
America six percent and CIS Countries five percent.
 Exports of pharmaceuticals in 2004 was Rs 17,000 crore.In the last
nine years, it reported a strong growth and in 2012, exports stood at Rs
63,500 crore.

12. Contd….
 For the period ending Mar 31, 2013, we are contemplating to grow by
25 percent to around Rs 75,000 crore", Pharmexcil Director General
Appaji PV.
 Around 50 more new manufacturing units are to be set up in
accordance to the USFDA and UK Medicines and Healthcare
Regulatory Agency (MHRA) standards.
 With all these development India is posed to become the biggest
producer of drugs in the world.
 Indian already has the biggest number of US Food and Drug
Administration (USFDA) standardized manufacturing units outside the
territory of United States.

13. Future Outlook
 India's pharmaceutical sector is expected to touch US$ 74 billion in
sales by 2020 from the current US$ 11 billion, according to a
PricewaterhouseCoopers (PwC) report.
 The Indian pharmaceutical market is expected to grow at a compound
annual growth rate (CAGR) of 14-17 per cent over 2012-16.
 The outlook on the Indian pharmaceutical industry remains
favorable, according to a report by ICRA and Moody's.
 The Indian Pharmaceutical sector is also expected to be among the top
ten Pharma based markets in the world in the next ten years.
 The national Pharma market would experience the rise in the sales of
the patent drugs.

14. Contd…
 With the increase in the medical infrastructure, the health services
would be transformed and it would help the growth of the Pharma
industry further.
 With the large concentration of multi national pharmaceutical
companies in India, it becomes easier to attract foreign direct
investments .
 The Pharma industry in India is one of the major foreign direct
investments encouraging sectors.

15. Conclusion
Step required for boosting competitiveness….
 Industry –academic relationship can be further explored.
 Income tax exemptions should be given on clinical trials & contract
research done outside the company & abroad.
 Spurious drug problem should be tackled.
 India should exploit its age old know how on traditional & herbal
medicines.
 Govt. should provide TAX holidays for some specific periods, so that
Indian companies can exploit the opportunity arising from patented
drug & take up marketing of GENERICS t0 US.

16. Contd…
 R & D & Human Resources Development are major recommendation
concern.