How Indian Pharma Companies are Growing their Business?

Indian Pharmaceutical Industry has grown near about 12-15% over the past few years which is a tremendous pace of growth if we compare it to European or US market. According to the forecasts,” The growth of pharma industry will be steady and India may rank among the top five global pharmaceutical market by 2030. The industry has provided large no. of employment opportunities to 1000’s of people, apart from giving contribution to the Indian economy.

Growth in the Pharmaceutical Sector

• Tremendous level of growth: In India, Pharma industry is showing tremendous level of growth marked growth in foreign expenditure and a big no. of mergers and acquisitions (M&A). This pharmaceutical sector is going to be the focusing area as Indian medicines are increasingly becoming popular in many parts of the world because of the easy availability and cost effectiveness.

• Lower cost: The manufacturing cost of Indian pharma companies is up to 65 percent lower than that of US firms and almost half of that of the European manufacturers. Also, the excise duty was revised twice first it was reduced to 8% and then to 4%.

• The thriving healthcare industry: The growth of healthcare sector also provides huge opportunities for investing in India’s pharmaceutical space. The growing network of public and private hospitals in the country generates a huge demand for waste management, hygiene products, industrial cleaning equipment and laundry solutions.

Pharmaceutical Exports

The Ministry of Commerce targeted Indian pharma sector exports of US$ 20 billion by 2020 at an annual growth rate of 16%.

Government also planned a ‘Pharma India’ brand promotion plan spanning over 3 years period to give an impulsion to generic exports.

Recent Initiatives

The department of pharma has prepared a ‘Pharma Vision 2020′ document to make India one of the major destination for end-to-end drug discovery and innovation and for that purpose, the department provides needed support by internationally competitive scientific manpower for pharma research and development (R&D), by way of world class infrastructure, venture fund for research in the public and private domain and such other measures.

Pharmaceutical Exports Council of India (Pharmexcil) has removed the requisite for overseas investors to obtain a no-objection from their joint venture partner before doing business out on their own or indulging in another local firm. This will boost the competitiveness of India as an preferable investment destination and will be helpful in attracting technology inflows into the country and higher levels of FDI.

 

The sector has shown fast growth in the recent past. Even so, the US Food and Drug Administration’s demanding guidelines have hit overseas sales but the government’s new pricing policy has impacted margins.

Can I Become Part of this Sector?

Yes, you can. Thousands of business opportunities are there in the flourishing pharma sector:

• Pharma Products Distributorship

Become a distribution medium, join pharma experts

• Own Pharmaceuticals Franchise

Buy a pharma sales outlet, get higher rate of returns.

• Pharmaceutical Sales Representative

Become a pharmaceutical sales agent, earn good rate of commission.

The Indian pharmaceutical sector is at the threshold of exponential growth and continue to be a two-way road that offers a winning situation for both domestic as well as multinational pharmaceutical companies. Get associated with the industry.