Pharmaceutical Industry is a significant business worldwide and contributes to the GDP of India as well.
The Indian Pharmaceutical industry ranks among the top ones in the 3rd World and offers a wide variety of high-quality products. The sector is estimated to have a worth or $21.5 Billion and is growing at a rapid pace of about 24% per year.
The Indian Pharmaceutical Industry has an 8% share in global sales. India also produces about 40% – 46% of all generic medicines used in the world. This is why the Indian Pharmacy sector ranks 3rd regarding volume and 13th regarding value. The Indian Pharmaceutical Industry has 20,000 independently registered units that are in fierce competition with the government’s price control. Due to this tough price competition, consumers in the local, as well as international markets, get quality products at a very reasonable rate.
The Pharmaceutical industry has seen rapid growth around the globe in the last few decades. The current market leader holds a 7% share of the entire market. There are nearly 250 corporations around the world that contain 70% share of the global market. Due to the low-cost labor and business-friendly policies on the Indian government, many of these corporations have shifted a part of their manufacturing and research services to India.
As more and more Pharmaceutical companies strive to increase their profitability and reduce overhead costs of research and product development, India has become a levered industry for the development of new drugs. By moving most of the new product research to India, pharmacy companies decrease expenditure by 40% – 60%. Consumers are also spending more on healthcare every day. As compared to 4% in 1997, consumers were paying 7% in 2007 on healthcare. This figure has reached13% in 2017.
Major Players in Indian Industry
Indian Pharmaceutical Industry has two major players
Which Are As Follows
- Companies having Indian Origins
- Multi-National Companies Investing in the Indian Pharmacy Sector
The top four players in the Indian Pharmaceutical Industry
Which Are As Follows
- Dr. Reddy’s Laboratories
- Sun Pharmaceutical Industries Ltd
These rankings are based on the sales figures of these players. Since the sales figures of most companies are not very different, this list can change over time.
The top multi-national companies in the Indian market
Which Are As Follows
- GlaxoSmithKline Pharmaceuticals Ltd.
- Abbott India Ltd.
The Indian origin company having the most significant share of the Pharmaceutical market in India is “Ranbaxy.” Sales figure reported by Ranbaxy in the year 2000 was $356.3 million which is indeed impressive. The upcoming players in the Indian market are:
- Glenmark Pharmaceuticals
- Cadila Healthcare Ltd
- Ajanta Pharma Ltd.
- Torrent Pharmaceuticals Ltd.
- USV Ltd.
- FDC Ltd.
- Macleods Pharmaceuticals Ltd.
Top Importers of Pharmaceutical products from India
India consumes about 80% of the drug produced in the county indigenously. However, Most of the bulk medicines produced are exported to different countries. According to stats collected in 1999-2000, Russia and the USA are the top importers of Pharmaceutical products from India. They imported drugs of $100.7 million and $137.9 million, respectively. Other countries that have increased the introduced of Indian Pharmacy products in recent years are Brazil, Singapore, and Iran.
Contract manufacturing has also benefited the Indian Pharmacy industry as well as the multi-national corporations and Local players involved in the process. Although Europe and North America dominate the Contract manufacturing industry, the growing Pharmacy markets in China and India now hold about 35% to 40% share for the production of ingredients and formulations.
There have been two major developments that advocate the fact that the Indian market will profit significantly from outsourcing. Firstly, a lot of drugs are about to come off-patent which will generate millions of sales. Secondly, India’s product patent regime has arrived which will boost the confidence of major international pharmaceutical players in the Indian market.
The triumph of the Indian industry in the contract manufacturing area has brought around many critical global developments. For instance, leading contract research and manufacturing services (CRAMS) company in India, named Jubilant Organosys, has bought into a number of US Pharmacy companies namely Target Research Associates, Trinity Laboratories, and Trigen Labs. Moreover, the Indian pharmacy giant, Bilcare Ltd, has acquired a US Pharmacy firm named ProClinical Inc. and established its first manufacturing facility in the US.
Factor That Effect The Growth Of Indian Pharmacy?
Some factors have contributed to the exponential growth of the CRAMS area in the Indian Pharmaceutical market.
Some of these are as follows :
- Modern Cutting-Edge Infrastructure
- High-Quality Research Expertise
- Dependable Regulatory Environment
- Abundant Skilled Labour
Role Of Indian Pharmacy Companies in the Global Market
Ranbaxy is looking to become the third largest Pharmacy company on the globe by having an alliance with another international player. Wockhardt and Dr. Reddy’s have also shown an active interest in the generics area and bought into some major foreign firms.
From January 2004 to October 2005, Indian Pharmacy companies made 18 major acquisitions in the international market. This included the addition of RPG by Ranbaxy for $80 million and Docpharma’s by Matrix Labs for $263 million which was also the most significant acquisition. Jubilant Organosys, Nicholas Primal, and Glen Mark also bought two international firms each during this time. The largest buyout by an Indian firm was done in February 2006 for $573.6 million when India’s Dr. Reddy’s purchased Betapharm Arzneimittel, the 4th largest German generics company, from a British company named 3i. These large buyouts by Indian companies indeed signify the exponential development of India’s Pharmaceutical industry.
Major Business Opportunities For Indian Pharmacies
The major area where there is room for massive development in India’s pharmacy sector is Generics. India exports drugs to more than 65 countries around the globe. The USA, which is itself the largest pharmacy market of the world, is currently the largest importer of Indian drugs in the open market.
Most of our customers will be very much interested to know what generic drugs are and why they are much cheaper than similar branded products available in the market.
What Is Generic Medicine?
The term “generic drug” is used for medicines that are developed and sold without any patent protection. Some of these medicines might have patents in their formulation, but there are no patents as far as the active ingredients used in these drugs are concerned.
Why Choose Generic Medication?
The generic drugs are usually cheaper than branded drugs because manufacture does not have any patent for the ingredients or formulation of his medication. A copyright protects the manufacturer’s claim to develop the product exclusively and does not allow any other entity to produce the same drug on the market. According to standard rules, the patent is valid for 17 years after which another object is allowed to manufacture the same drug.
A drug that has been patented is the only one of its kind in the market. This means that its formulation and effects are exclusive. Therefore, when you buy a patented drug from the market, you are not only paying for the cost of ingredients and manufacturing but also for the value of research, testing of the drug, proving that the drug is safe for consumption and marketing and transportation of the drug. If the drug is available only for particular symptoms or conditions, the consumers also have to pay a premium. All of these costs make the drug very expensive as compared to a non-patent drug. The manufacturer, in this case, is also charging consumers for the efforts during the entire development procedure.
The global pharmaceutical industry has been changed entirely due to breakthroughs and technology advancements in the last three decades. This rapid change has also affected the Indian trade, and it has grown into a duly organized and well-developed market.
Price Policy Of Indian Pharmacy
Every genuine buyer is much concerned about the price of the product he or she is purchasing. We fluctuate our prices according to the industry conditions and ensure that our customers will get the best rate from us. We also offer deals and discounts on the hottest selling products frequently to ensure that we give something back to our loyal customers.
We strive to provide the best services and products to our customers. Shop with us once and we assure you that you will find our products well-tailored to your needs and requirements.