India's pharma industry is about to launch the next stage: A recent study shows that several small and medium sized companies (SMEs) are on the brink of becoming global players in Asian and South American pharma markets.
UBM Live, has released the findings of its Pharma Insights at CPhI India held at Mumbai. The report entitled: ‘CPhI India Pharmaceuticals 2015 - Industry explorations’ was conducted by CPhI in partnership with GBR and provides a com-prehensive analysis of the India pharma market. One of the most startling trends to emerge from the report is that small and medium sized enterprises (SMEs) that have traditionally relied on the domestic market are now rapidly expanding and emerging as MNCs based on exports led growth strategies. For example, Galpha Laboratories - 66% of sales this year were domestic - has seen exports expand by 400% in the last year.
Globally, the largest pharma companies in India have consolidated an exports market presence, and following these 'market makers', a second wave of Indian manufacturing firms are looking to grow beyond the $100million mark and to increasingly export internationally. One key new region to emerge for exports is Japan, a market that currently has limited overseas penetration and which is now opening its doors. Collectively Indian companies are looking at this region as the next great growth market.
South and Latin America are Key Markets for Pharma Growth
Another key area could be South and Latin America, where a number of Indian exporters are currently targeting their efforts- countries like Argentina recently removed trade barriers and are welcoming Indian imports for their healthcare economy. Two thirds of India's pharma industry is still coming from the SME sector and with these companies increasingly expanding into international markets, the next few years promise to see a more mature and globally dominant Indian pharma industry.
In recent years, market analysts have seen India vastly increase its capabilities, expanding from API manufacturing to finished dosage delivery. Furthermore, India's API producers are now shifting towards high value, low volume work, with complex chemistry and IP challenges- by using this strategy in the last 2-years alone, Megafine has grown at an annualised rate of over 30%, taking its turnover past US $ 40 million.