ANALYSIS OF INDIAN PHARMACEUTICAL INDUSTRY

Submitted to:
Mr. Gurdeep Agarwal

Submitted by:
Deepshikha Mohanty (FPG0709/039)
 EXECUTIVE SUMMARY

The Indian Pharmaceuticals sector has come a long way, being almost non-existing during 1970,
to a prominent provider of health care products, meeting almost 95% of country’s
pharmaceutical needs. The domestic pharmaceutical output has increased at a compound growth
rate (CAGR) of 13.7% per annum.

The Indian pharmaceutical industry, with US$4 billion in domestic sales and over US$3
billion in exports, is showing satisfactory progress in terms of infrastructure development,
technology base and product use. The industry now produces bulk drugs belonging to all major
therapeutic groups requiring complicated manufacturing processes and has also developed
excellent ‘good manufacturing practices’ (GMP) compliant facilities for the production of
different dosage forms. The strength of the industry is in developing cost-effective technologies
in the shortest possible time for drug intermediates and bulk actives without compromising on
quality. This is realized through the country’s strengths in organic synthesis and process
engineering.

Various models have been used for the purpose of analysis of the Indian Pharmaceutical
Industry. The models used are the Porter’s five forces model which analyzes an industry by
breaking down the influencing factors into five separate parts i.e, threat of new entrants, the
bargaining power of buyers, bargaining power of suppliers, threat of substitutes & Industry
competition. The S.W.O.T analysis has been used which analyzes the position of the industry
with respect to its internal & external environment. Value cahin analysis measures
systematically the development of competitive development. P.E.S.T analysis has been used to
examine the external environment of the industry.

The last section of the report includes the introduction to four companies & future outlook of the
Indian Pharmaceutical Industry. The main growth drivers for the industry are Generics,
Biotechnology & Outsourcing.
 TABLE OF CONTENTS

Chapter Topic Page No

1 Introduction 1

2 Industry Structure 3

3 Porter’s Five Forces Model 4

4 S.W.O.T Analysis 6

5 Advantage in India 10

6 Trends in Pharmaceutical Industry In 2008 11

7 Impact of Union Budget 2008-09 12

8 Value Chain Analysis 13

9 P.E.S.T Analysis 14

10 Few Top Companies 16

11 Future Outlook 18

12 Conclusion 19

13 Appendix 20