05-11-2012, 05:44 PM
Indian Pharmaceutical Industry
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The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian pharmaceutical industry is expected to be worth $ 5.5 billion. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The number of purely Indian pharma companies is fairly low. Indian pharma industry is mainly operated as well as controlled by dominant foreign companies having subsidiaries in India due to availability of cheap labour in India at lowest cost.
While patent expires are expected to peak out in 2012, we believe that the growth momentum has taken a hit and would just sustain. We intend to study this industry for the following reasons:
• Industry CAGR is expected to be 17%, with a phenomenal growth of 15.9% in the year 2011.
• It has heavy competition but not all can cope up with the costs involved on surviving this industry the major one being Research and Development cost.
• It is one of the safest industries as it growth is unaffected by any factor but competition and the company themselves.
The reasons why we selected pharmaceuticals and that too specifically in India is for the following advantages India holds:
• India has a pool of personnel with high managerial and technical competence as also skilled taskforce.
• Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and sophisticated bulk drugs exports.
• India has a 54 year old democracy and hence has a solid legal framework and strong financial markets. There is already an established industry and business community.
• It has a good network of world class educational institutions and established strengths in Information Technology.
• The country is committed to free market economy and globalization. Above all, it has a 70 million middle class market which is growing continuously.
• For the first time in many years, the international pharmaceuticals industry is finding great opportunities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India.
Cipla
Cipla is a prominent Indian pharmaceutical company, best-known outside its home country for manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries. It has played a similarly prominent role in expanding access to drugs to fight influenza, respiratory disease and cancer. Founded by nationalist Indian scientist Khwaja Abdul Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935. Cipla also has an export market and regularly exports to more than 185 countries in all corners of the world.
Ranbaxy
Ranbaxy Laboratories Limited is an Indian pharmaceutical company that was incorporated in India in 1961. Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale. Ranbaxy exports its products to 125 countries with ground operations in 46 and manufacturing facilities in seven countries. In 2011, Ranbaxy Global Consumer Health Care received the Pharma OTC Company of the year award.