The Indian pharmaceutical industry is worth about $10 billion and growing at 8-9% annually. Major players include Dr. Reddy's, Cipla, Lupin, Ranbaxy, and Aurobindo Pharmaceuticals. The industry manufactures 70% of drugs for domestic use and exports medicines worth $11 billion. While India imports some drugs and ingredients, the industry focuses on research and development, with top companies spending $2000 crores annually on R&D. The future of the industry is promising due to the growing domestic market, increasing exports, and advances in technology.

1. A REPORT ON PHARMACEUTICAL
INDUSTRY IN INDIA
By ,
Bashpika K
Chirag S Malaviya
Nikul Thaker
Govindu Ram Kashyap
Shabeer Khan

2. Introduction
• The Indian Pharmaceutical industry is one of the best
among science based industries with vast range of
capabilities in the filed of drug manufacture and technology.
• It is estimated to be worth about US$ 10 billion and with the
growth rate of 8-9%.
• The major players considered in the market are
• Dr. Reddy’s lab
• Cipla
• Lupin
• Ranbaxy
• Aurobindo Pharmaceuticals

3. Contd..
• The department of Pharmaceuticals has organized
“Pharma vision 2020”
• The drugs manufactured in India contribute around 70% of
domestic use which include drugs, chemicals , tablets ,
capsules , orals and injecting ones remaining is charted by
exports.
• They use intensive and highly augmented technology in
manufacturing process due to which the medicines rates are
comparatively low and they come with minimum side
effects.

4. Current Scenario
• Domestic:
• India is on the verge of making many new medicines and drugs in near
future.
• Indian Pharmaceutical sector is expected to touch sales of 74 billion USD
in 2020 in this highly competitive growth scenario.
• Global Pharmaceutical sector will reach USD 8 million by 2015
• Domestic pharmaceutical sector will reach USD 20 million by 2015
• India is also exporting medicines worth approx 11 billion.
• Major factors for the growth rate of Indian medicines are increasing sales
of generic medicines and grater sales of rural in rural market.

5. Global Scenario
• The value of global market is expected to grow
by 7-8%.
• The amount of GDP used by
• different countries
• Japan spends highest
• amount i.e. 2.3% and U.K
• and Luxemburg are least
with with 0.9 and 0.5%.

6. Technology and R&D
• R and D is the most important department in
pharmaceutical industries. The top companies spend around
Rs 2000 crores in R & D.
• Most of the companies profit is dependent on R & D
innovations.
• Some companies try and improve their R & D by merging
with companies which are strong in R &D. Ex: Cipla and
Medpro
• The emergence of complex disease has increased the
difficulty in R &D, but information technology has bought
effectiveness in R &D.
• Preparing proper medicines in proper quantities with proper
dosage is very important in R & D.

7. REFORMS AND ACTS
• Indian Patents Act 1972
• Post TRIPS Patent Laws
• Law pertaining to manufacture and drug in
India
• Drugs and cosmetic Act 1940
• Pharmacy Act 1948
• Narcotic Drugs and Psycotheropic Substances
Act

8. MAJOR FACTORS AFFECTING GROWTH
• The growth of Pharmaceutical industry is expected to be
largely driven by new product launches and R&D.
• The various factors influencing growth are as follows:
1. Operational Efficiency: The demand for medicines
that are cheaper, which have little or no side effects and
which are more efficient, has increased. The standard
that can boost operational efficiency is the Process
Analytical Technology (PAT). PAT is aimed at enhanced
understanding along with a controlled manufacturing
process which is very consistant.
2. Emerging Markets: The importance of investing in
emerging markets emerges from the fact that the
population is increasing and also from the incidence
of increase in diseases.

9. RESEARCH AND DEVELOPMENT
1. RANBAXY: R&D is one the important business
strategy of the company. With more than 30 years of
R&D experience, the company has various research
centres, highly qualified R&D scientists. The focus of
Ranbaxy’s R&D is on quality product development,
keeping in view safety of drugs on target populations.
2. CIPLA: One of the first company to develop and
produce Active Pharmaceutical Ingredients(API).
Research and Development in Cipla is accomplished
by experienced scientists, technicians and chemists.
Main focus of R&D includes: Product and process
optimization, Analytical method development,
Analytical method validation, Evaluation and techno-
marketing studies, Technology Transfer.

10. 3. DR. REDDY’S LAB: Dr. Reddy’s business is supported
by its technologically advanced Product Development
infrastructure, which identifies new products and is
engaged in every step of the way. Dr Reddy’s Integrated
Product Development Organization (IPDO) is a one of the
facility which comprises scientific talent across various
functions and possesses a culture of modernization.
4. Lupin: Research is and will continue to be the main
driver for success of Lupin Pharmaceuticals. Research is
the foundation upon which Lupin Pharmaceuticals will
participate in a variety of therapeutic areas.
5. Aurobindo Pharma: Aurobindo Pharma Ltd. has separate
state-of-the-art research centers dedicated to Chemical
Research and Formulation Research. The research centre
focuses on Oral solid's and Oral Liquid's development,
analytical method development, Validation and Stability,
parenteral development, Bio-equivalence.

11. EXPORTS
• The export top 5 Pharmaceuticals companies for a period of last 5 years
where Dr Reddys lab is leading the pack in 2013 followed by Cipla,
Ranbaxy, Aurobindo Pharma and Cadila health.
• According to Brand India Equity Foundation, the Indian pharmaceutical
market is likely to grow at annual growth rate (CAGR) of 14-17 per cent in
between.
• Export now a days is becoming an important driving force for expansion in
pharmaceutical industry with more than 50 % revenue coming from the
overseas markets.
• India’s exports of drugs, pharmaceutical & fine chemicals stood at 1171.23
billion rupees during 2011–2012, up 33 per cent as compared to 879.59
billion rupees in the same period during the previous year.

12. IMPORTS
• India’s imports of drugs, pharmaceutical & fine
chemicals stand at 143.85 billion rupees during 2012–
2013, up 29 per cent as compared to 111.14 billion
rupees in the same period during the previous year,
which is not really a good sign.
• India is almost self-sufficient in formulations and its
imports mostly comprise bulk drugs and some
intermediaries.
• These imports are freely permitted, except those that
are restricted in the foreign trade policy. Import
restrictions are mostly on drugs that contain narcotics
and psychotropic components.

13. ADVANTAGES AND DISADVANTAGES OF
EXPORTS TO INDIA
ADVANTAGES:
1. Our GDP will increase as the exports increase.
2. New technologies will come in our countries
3. Scientists might develop new technique while exporting.
4. Healthy network of educational institutions and has
established strength in IT.
5. It has committed to free market economy and finding great
opportunities to grow.
DIS-ADVANTAGES:
1. They might reduce the opportunities for INDIAN players to
compete in market.
2. Top quality of drugs in India might be exported leaving
second and third quality of drugs for INDIA
3. Due to this export the prices in the drug market of INDIA
might increase.

14. ADVANTAGES AND DISADVANTAGES OF
IMPORTS TO INDIA
ADVANTAGES:
1. We may get new technologies in our country as we import
medicine.
2. We may get new medicine in which we can cure some diseases
quickly.
3. We might improve the relations with them through exports.
4. The prices may differ and the costly medicines might be
available for a lower price.
5. We might bring scientists from abroad for further classifications.
DIS-ADVANTAGES:
1. The GDP of country might decrease due to the expenses in
import.
2. Some medicines might not suit for INDIAN customers as they
are imported from abroad.
3. The prices of the drugs might vary as it is exported.

15. • Mergers and Accquisitions
• During 2008-09, DRL acquired three new facilities viz.,
DowPharma's small molecules facility in UK, BASF Corporation's
manufacturing facility at Shreveport in Louisiana, USA, and Jet
Generici SRL, a company engaged in the sale of generic finished
dosages in Italy. These acquisitions are already paying dividend and
will act as building blocks for future growth of DRL
• In 2013 Aurobindopharma invested Rs.156 million to acquire 60%
stake in an upcoming manufacturing facility of Celon Laboratories
Limited. The facility will manufacture hormonal and oncology
products
• The Indian company in November 2012 offered to buy 51 percent of
CiplaMedpro at 8.55 rand a share. After Cipla's initial offer, the
South African company won a 1.4 billion rand ($158 million)
government drug contract, leading analysts to revalue the African
firm higher.

17. PEST
• Before creating business plans or making
decisions, it is important to 'scan' the external
environment. This can be achieved through a
PEST analysis, i.e. an investigation of
thePolitical,Economic,Social andTechnological
influences on a business. In addition it is also
important to be aware of the actions of your
competitors.

18. • Political Factors: All changes from importing and exporting
are regulated by each countries administration that handles
the regulations for drug import, export and production. These
organizations and administrations are the important political
actors in the pharmaceutical industry.
• ECONOMIC FACTORS: The Indian pharmaceutical industry, the most
respected amongst the emerging nations, is one of the most sought after
sectors from a global collaboration point of view. Having a strong macro
and socio economic foundation, the “driving” factors are intrinsically deep-
rooted in the Indian pharmaceutical sector and have not been deterred by
recent speed breakers like quality issues faced by a few
Indian companies.

19. • Socio-cultural Factors- Demographic evolution, characterized
mainly by the decreasing of the birth rate and the increase of life
average standing in the developed countries, simultaneously with
the increase of the birth rate in the poor countries, correlated with
an increase/decrease of the level of living and of the preoccupation
from the part of the population for health protection has
determined major mutations in the volume and consume structure
of the pharmaceutical products.
• TECHNOLOGICAL FACTORS:
The use of technology in healthcare delivery has dramatically
changed how both providers and patients interact. With technology
use continuing to increase, the industry must change its approach
to sales and marketing and how they communicate and engage
with patients, physicians and hospitals.

20. • Thank you