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1. Introduction

Indian pharmaceutical industry is growing leaps and bounds but there is some sort of apprehension amongst the Indian pharma industry as to whether it would be able to sustain the past growth level in the coming years, in the light of the impending patent regulations and the liberalized global trade. While a few such as Ranbaxy, Dr.Reddys, Orchid, Lupin and others have done extremely well, a large number have failed miserably.
General view is that success of the Indian pharma industries is only due to it's capability in reverse engineering. But truth is that on one hand they have stood against severe competition from well established multi national companies and on other it enjoys excellent credibility and faith among consumers, particularly in India. Over and above that, it has also practiced reasonable level of fairness in price fixing and has exhibited responsible corporate behavior. Considering ever increasing population and diseases, low per capita consumption of drugs and very small penetration of modern medicine in rural areas; Indian medical needs for drugs are bound to grow phenomenally in the coming decade. Also India, by virtue of its technological ability to produce cost-effective bulk drugs and formulations matching in quality with the very best in the World, also has the opportunity of being a major exporter of these items, particularly of generic products for the global markets.

2. Current Scenario in the Sector

2.1. SWOT

Strengths

1. Considering 1 Billion population it is largely an untapped market. Penetration of modern medicine is < 30%.

2. Fast changing lifestyles opens a huge market for lifestyle drugs, which has a very low contribution in the Indian markets.

3. One of lowest cost producers of drugs in the world. Round 40% to 50% of world average.

4. Excellent chemistry and process reengineering skills helping in developing cost effective processes.

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* Contributed by -
Gulbahar Grover & Ruchi Katiyar,
PGDIM - 11,
NITIE, Mumbai.