2. 1. Introduction
2. About Indian Pharma
industries
3. Growth of Pharma
industries
4. Key players
5. PESTELEE Analysis
3. INTRODUCTION
Rapid Growing sectors of the Indian economy.
Producer of low cost high quality bulk drugs and
formulations.
The total market size of Rs. 1,233 bn ( domestic
Rs.600 bn~48.6%) and exports Rs. 633 bn ~51.4%).
The industry grew at a CAGR of ~12.5% during the
past five years and is expected to growth at a robust
CAGR of 15.1% during FY2012-17 given huge
export potential.
Steady growth in the domestic formulation market.
4. GROWTH OF THE INDUSTRY
Worth of the Pharma industry – $ 6 billion
Accounts for - 1% of the world's Pharma industry in value
terms and 8% in volume terms. .
Revenues generated - US$ 7.6 bn and have grown at an
average rate of 10% over last five years
India is now among the top five pharmaceutical emerging
markets
expected to grow five-fold to reach Rs 5 lakh crore (US$ 91.45
billion) by 2020
6. PESTEL ANALYSIS
A PEST analysis is concerned with the
environmental influences on a business.
The acronym stands for the Political, Economic,
Social and Technological
These issues affect the strategic development of a
business.
Identifying PEST influences is a useful way of
summarizing the external environment in which a
business operates
7.
8. POLITICAL
There is now growing political focus and pressure on
healthcare authorities across the world. This means that
governments will be looking for savings across the board.
-What pressures will be put on pricing?
-What services will be cut?
-Will the same selection of drugs be available to everyone?
Political uncertainty – no consistent policy.
Stringent Price Control .
9. SOCIAL
The increasing aging population offers a range of
opportunities and threats, trick will be to capitalize on
the opportunities.
There is also the problem of the increasing obesity
amongst the population and its associated health risks.
Patients and home carers are becoming more informed.
Their expectations have changed and they have
become more demanding.
Public activism has also increased through the
harnessing of new social networking technologies.
How can pharmaceutical companies get closer to
consumers without over stepping the regulatory
boundaries?
10. ECONOMICAL
The global economic crisis still exists yet government
reports still show that the spend on healthcare per
capital continues to grow.
The reduction in consumer disposable income will have
an impact on those countries using health insurance
models particularly where part payment is required.
These economic pressures are seeing an increased
growth in strategic buying groups who are forcing down
prices.
Increased pressure from shareholders has caused a
consolidation of the industry: more mergers and
acquisitions will take place over the coming years.
11. TECHNOLOGICAL
Technological advancements will create new
business prospects both in terms of new therapy
systems and service provisions. The online
opportunities will see the growth in:
New info and Communications technologies.
Social Media for Healthcare.
Customized Treatments.
Direct to Patient Advertising.
Direct to patient communications.
12. ENVIRONMENTAL
There is a growing environmental agenda and the
key stake holders are now becoming more aware of
the need for businesses to be more proactive in this
field.
Pharma companies need to see how their business
and marketing plans link in with the environmental
issues.
There is also an opportunity to incorporate it within
their Corporate Social Responsibility programmes.
Marketing and new product development should
identify eco opportunities to promote as well.
13.
14. Strengths :-
1.Cost Competitiveness
2 Developed Industry with Strong
Manufacturing Base
3.Well Established R&D infrastructure
4. Access to pool of highly trained
scientists,
Opportunities :-
1. Significant export potential.
2. Marketing alliances for MNC products in
domestic market and international market.
3.Contract manufacturing arrangements with
MNCs
Weaknesses:-
1. Low investments in innovative
R&D.
2. Lack of resources to compete with
MNCs for New Drug Discovery &
Research
3. Lack of strong linkages between
industry and academia.
Threats :-
1.Product patent regime poses serious
challenge to domestic industry unless it invests
in research and development
2. R&D efforts of Indian pharmaceutical
companies hampered by lack of enabling
regulatory requirement
3. Export effort hampered by procedural
hurdles in India as well as non-tariff barriers
imposed abroad.
