Is a Pharmaceutical Business Suitable for You in India?
The pharmaceutical industry in India is experiencing significant growth, making it a promising venture for both domestic and international investors. If you are pondering whether to enter this sector, the answer is a resounding yes, provided you are prepared to be patient and persistent.
The Indian Pharmaceutical Landscape
India stands out as a key player in the global pharmaceutical market. According to recent figures, India is the world's largest supplier of generic medications, accounting for around 20% of the global volume. Additionally, India supplies approximately 60% of the global vaccination demand. The Indian pharmaceutical sector boasts a substantial market value of approximately $42 billion worldwide.
Pros and Challenges of the Pharmaceutical Industry in India
There are several compelling reasons to consider the pharmaceutical sector in India, including:
Economic Efficiency: Manufacturing units in India are significantly cost-effective compared to other developed nations. This cost efficiency extends to various aspects of the industry, including manpower and clinical development. Demand and Opportunity: The market demand for pharmaceuticals is high, and there are numerous business opportunities available within the sector. Government Support: The Indian government has implemented policies aimed at fostering growth in the pharmaceutical sector, including support for research and development and export incentives.Strategic Considerations for Success
While the pharmaceutical industry in India presents numerous opportunities, it is also important to consider certain strategic factors:
Investment Considerations
To succeed in the pharmaceutical industry, you must be prepared to invest both time and money. This is a joint venture that requires collaboration, not a solitary endeavor. As such, it is crucial to select dedicated employees who are committed to the success of the business. Embracing the latest technologies and focusing on innovative products that align with market trends will also be key to your success. The role of marketing cannot be overstated, as it plays a crucial role in driving product success and maintaining a strong brand presence.
Marketing Strategies
In India, you will need to develop strategic marketing approaches. Generics often require a more nuanced strategy than branded medications. Consider implementing strategies such as value-based pricing, gift packaging, and doctors' tours. These approaches can help differentiate your products and strengthen your market position.
Market Hub Cities
India's pharmaceutical industry is concentrated in major metropolitan areas. Cities such as Hyderabad, Mumbai, Bangalore, and Ahmedabad are key pharmaceutical hubs. These cities provide a fertile ground for startups and established companies alike, benefiting from a robust ecosystem of industry knowledge and resources.
Historical Growth and Future Prospects
The pharmaceutical industry in India has seen remarkable growth over the years. In 2017, the sector was valued at approximately $33 billion. Generic drugs account for 20% of global exports by volume, making India the world's largest provider of generic medicines. Domestic pharmaceutical market turnover reached Rs 1,290,15 crore ($18.12 billion) in 2018, recording a 9.4% year-over-year growth. Exports revenue also saw significant increases, reaching $17.28 billion in fiscal year 2018 and $19.14 billion in fiscal year 2019.
Indian companies have established a strong presence both domestically and internationally, leveraging their expertise in reverse-engineering new processes for drug manufacturing at low costs. This has been a significant advantage for the industry and has contributed to its continued growth and success.
As the industry continues to evolve, there are ample opportunities for new entrants to capitalize on the current favorable conditions. With the right strategies and a deep understanding of the market, a pharmaceutical business in India can be both lucrative and rewarding.