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The Indian Pharmaceutical Industry Essay

1976 words - 8 pages

Introduction
The Indian Pharmaceutical Industry is in the front rank of India’s science based industries. It is a highly organized sector. The Industry is estimated to be of worth $ 4.5 billion, with growth of about 8 to 9% annually. It ranks very high in terms of technology, quality and range of manufactured medicines. From simple headache pills to heavy antibiotics and complex cardiac compounds, almost each and every type of medicine is now made indigenously. It meets around 70% of the country's demand for bulk drugs, drug intermediates, tablets, chemicals, capsules, pharmaceutical formulations orals and injectable. There are 250 large units and 8000 Small Scale Units, which forms the core of the Indian pharmaceutical industry (including 5 Central Public Sector Units).

Indian Pharmaceutical industry in 2012 – 2014
Increasing sales of generic medicines, growth in chronic therapies and greater penetration in rural markets are reasons behind a double-digit growth i.e. 13-14% in 2013. The year 2012 closed with growth of 12%. It attracted FDI worth 9,776 million USD between April 2000 to November 2012. India's exports of drugs and pharmaceuticals grew by 27% to Rs 60,000 crore (11.19 billion USD) for the year ended March 2012. This industry is projected to show double-digit growth in future owing a rise in pharmaceutical outsourcing and rising investments by multinational companies.

Most of the companies in this sector have shown considerable decline in growth in the first half of 2011. Companies like Cipla, Torrent and IPCA which focused on Indian market are already in trouble. Growth rates of companies such as Dr. Reddy and Ranbaxy have come down. On the other hand Sun and Lupin are showing growth because to the shift of focus toward the specialty therapies, where competition is low.
(http://businesstoday.intoday.in/categorylist/14/1/pharma.html)

SWOT ANALYSIS:
Strengths:
1. Low production cost.
2. Raft of installed capacities
3. Efficient technology
4. pool of skilled technical manpower.
5. Increasing liberalization.

Opportunities:
1. Aging and growing income.
2. Increased attention for health.
3. New social diseases and diagnoses
4. Saturation point is far away.
5. New therapy approaches and delivery systems.
6. Spreading attitude for soft medication.
7. use of Generic Drugs.
8. Globalization
9. Easier international trading.
10. New markets.

Weakness:
1. Fragmentation of installed capacities.
2. Low technology level
3. Non-availability of intermediaries for bulk drugs.
4. Lack of experience to exploit patent regime.
5. low R&D.
6. Low share in World Pharmaceutical Production (only 1.2% of world production but have 16.1% of world’s population).
7. Lack of experience in International Trade.
8. Low strategic planning for future.

Threats:
1. Containment of rising health-care cost.
2. High Cost of discovering and thus fewer discoveries.
3. Strict registration procedures.
4. High entry cost..
5. High sales and...

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