SUBJECT:MARKETING MANAGEMENT

FACULTY:Mrs. PREETI KAUSHIK

DATE:03/10/2019
INDUSTRY:PHARMACEUTICAL
INDUSTRY

PREPARED BY:

VIKAS SINGH:42

THASHIF THAJUDEEN:35

FARDEEN SHAIKH:40
 INDEX
 Introduction
 INDIAN PHARMACEUTICAL INDUSTRIES
 Top 10 Pharmaceutical Companies in India
 Market Size
 Investments and Recent Developments
 Government Initiatives
 Road Ahead
Introduction

India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry
supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand
in the US and 25 per cent of all medicine in UK.

India enjoys an important position in the global pharmaceuticals sector. The country also has a
large pool of scientists and engineers who have the potential to steer the industry ahead to an
even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat
AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

INDIAN PHARMACEUTICAL INDUSTRIES

The pharmaceutical industry is an important component of health care systems throughout the
world; it is comprised of many public and private organizations that perform scientific research
to discover, develop new drugs, manufacture and market medicines for human and animal health.

The pharmaceutical industry is based primarily upon the scientific research and development
(R&D) of medicines that prevent or treat diseases and disorders. Most MNP companies are
involved in all these activities. Pharmaceutical industry is a swiftly growing industry in the
country and India stand the top 10 pharmaceutical markets in the world.

The total revenue generated by pharmaceutical companies in India in the last financial year was
more than $20 Billion, which is expected to cross the mark of $26 Billion by 2016.

It produces drugs and vaccines for various domains like cardiology, nephrology, diabetology,
gastroenterology and orthopedies etc.

Top 10 Pharmaceutical Companies in India

 1 Sun Pharmaceuticals Limited

Sun Pharma was founded by Dilip Shanghvi and has become the best firm in India. Being a
Mumbai based pharmaceutical company, it manufacturers pharmaceutical formulations as well
as active pharmaceutical ingredients (APIs) in both US and India.

The company was established in 1983 in Gujarat’s Vapi area. At the initial phases, it
manufactured 5 products in order to treat ailments related to psychiatry. In 2014, the company
acquired Ranbaxy thereby making it one of the topmost pharma companies in the country

CEO: Dilip Shanghvi

◾Revenue: ₹7,947 Crores

◾Market Cap: ₹138,489 Crores

◾Total Assets: ₹26,548 Crores

Lupin Limit

Being the 12th largest pharmaceutical company by market capitalization, Lupin Limited also
makes a place in this list. If we talk about the worldwide ranking, then this company has the 8th
place in the measured by revenue.

In the year 1968, this pharmaceutical firm came into existence and was founded by Desh Bandhu
Gupta. Being an associate professor at BITS Pilani, he worked hard to make the firm popular in
India.

Now the firm sells its products to more than 70 countries that include- South Africa, Europe,
Japan, Australia, and the Philippines.

CEO: Vinita D. Gupta

◾Net Profit: ₹1,344 Crores

◾Revenue: ₹10,088 Crores

◾Market Cap: ₹38,609 Crores

◾Total Assets: ₹15,797 Crores

 Dr. Reddys Labs

The pharmaceutical company was founded in 1984 by Anji Reddy. And ever since its evolution,
it comes in the top 10 pharma companies in India 2018 by revenue generation. Being a
Hyderabad based company, it manufactures more than 180 medicines and over 50 active
pharmaceutical ingredients.

Mr. Anji Reddy had previously worked at IDP (Indian Drugs and Pharmaceuticals Limited).
What initially began as a drug supplier manufacturer soon started to export to various other
unregulated markets.

CEO: G. V. Prasad

◾Net Profit: ₹566 Crores

◾Revenue: ₹9,359 Crores

◾Market Cap: ₹40,100 Crores

◾Total Assets: ₹14,396 Crores

CIPLA

If anyone is known as a high growth pharma companies in India, then it would surely be CIPLA
(Chemical, Industrial & Pharmaceutical Laboratories). Being headquartered in Mumbai since
1935, it has become the best pharmaceutical company in the country.

The firm develops medicines in order to treat various diseases such as- depression, diabetes,
respiratory diseases, and other chronic diseases.

CEO: Umang Vohra

◾Net Profit: ₹1,468 Crores

◾Revenue: ₹11,444 Crores

◾Market Cap: ₹49,204 Crores

◾Total Assets: ₹14,287 Crores

Aurobindo Pharma Limited

Being a Hyderabad based pharmaceutical company, Aurobindo Pharma Limited has become one
of the best from the rest of the competition.

One of the strongest points of the company includes- 6 therapeutic areas such as- CNS (Central
Nervous System) products, cardiovascular products, antibiotics, antiretrovirals, anti-allergic, and
gastroenterological.

Aurobindo Pharma Limited deals with both the manufacturing and production of generic
medicines and of active ingredients. It was founded in the year 1988, Puducherry and ever since
is counted among the top pharma companies in India.

CEO: N.Govindarajan

◾Net Profit: ₹1,812 Crores

◾Revenue: ₹10,303 Crores

◾Market Cap: ₹45,401 Crores

◾Total Assets: ₹13,636 Crores

Cadila Healthcare

Cadila Healthcare is the largest pharma company in India that is headquartered in

Ahmedabad. It was founded in 1952 by Ramanbhai Patel and has become the largest
pharmaceutical company in India.

CEO: Pankaj Patel

◾Net Profit: ₹1,090 Crores

◾Revenue: ₹5,800 Crores

◾Market Cap: ₹37,136 Crores

◾Total Assets: ₹10,397 Crores

Glenmark Pharmaceuticals

Glenmark is a Mumbai based pharmaceutical firm which was founded in 1977. This
pharmaceutical firm exports and sell products to over 70 countries globally.

Gracias Saldanha is the founder of this firm which he named after his sons Glen and Mark. It
has become a leading pharmaceutical company having more than $1.25 billion in sales in
India.

This pharma company is currently working in the development of innovative drugs in the
field of dermatology, and other respiratory diseases.

◾CEO: Glenn Mario Saldanha

◾Net Profit: ₹1,014.35 Crores

◾Revenue: ₹6,431.88 Crores

◾Market Cap: ₹17,758.25 Crores

◾Total Assets: ₹13,372.51 Crores

Divi’s Laboratories

Murli Divi founded this pharma company in the year 1990. Being the youngest firms in the
pharmaceutical industry, it leads the list. It exports high-quality products in more than 95
countries globally.

The firm manufacturers Nutraceutical Ingredients, Generic APIs, offers Custom Synthesis of
APIs to Big Pharma companies. In this way, it provides a competitive benefit over the entire
lifecycle of the products.

In addition to this, Divi’s R&D team is always engaged in the development of non-infringing
processes at competitive pricing throughout the product life cycle.
◾CEO: Murali Divi

◾Net Profit: ₹869 Crores

◾Revenue: ₹3,837 Crores

◾Market Cap: ₹39,023 Crores

◾Total Assets: ₹6,022 Crores

Torrent Pharma

Torrent Pharma is one of the best companies that has made its way into this list. It is an
Ahmedabad based firm that manufactures medicinal drugs for the central nervous system
(CNS), gastrointestinal, pain management, gastrointestinal, diabetology, and anti-infective
segments.

This leading pharmaceutical company has a manufacturing plant at Dahej, Gujarat

Pithampur, Madhya Pradesh. On each in at Baddi, Indrad, Himachal Pradesh, and Rang-Po,
Sikkim.

Talking about the subsidiaries, then this pharma company has in the United States, Russia,
Canada, Germany, Brazil, and the Philippines.

CEO: Samir Mehta

◾Net Profit: ₹482.00 Crores

◾Revenue: ₹4,248.00 Crores

◾Market Cap: ₹27,466 Crores

◾Total Assets: ₹9,708 Crores

Biocon Limited

Biocon is India’s most popular biopharmaceutical company which has headquarters in

Bengaluru. It manufactures generic active pharmaceutical ingredients and its products are
sold globally at a very huge scale.
It was founded in 1978 and has become the topmost pharmaceutical firms of this country. In
addition to that, more than 9000 people are currently employed at this company.

◾CEO: Arun Suresh Chandavarkar

◾Net Profit: ₹238 Crores

◾Revenue: ₹2,419 Crores

◾Market Cap: ₹37,752.00 Crores

◾Total Assets: ₹6,805 Crores

Market Size

The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s
pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015–20 to
reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and
have reached US$ 19.14 billion in FY19. Pharmaceutical exports include bulk drugs,
intermediates, drug formulations, biologicals, Ayush & herbal products and surgicals.

Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from
the US Food and Drug Administration (USFDA) in 2017. The country accounts for around
30 per cent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics
market.

India's biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture,

bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per
cent a year and reach US$ 100 billion by 2025.

Investments and Recent Developments

The Union Cabinet has given its nod for the amendment of the existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent
under the automatic route for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 15.98
billion between April 2000 and March 2019, according to data released by the Department of
Industrial Policy and Promotion (DIPP).

Some of the recent developments/investments in the Indian pharmaceutical sector are as

follows:

Between Jul-Sep 2018, Indian pharma sector witnessed 39 PE investment deals worth
US$ 217 million.

Investment (as % of sales) in research & development by Indian pharma companies*

increased from 5.3 per cent in FY12 to 8.5 per cent in FY18.

In 2017, Indian pharmaceutical sector witnessed 46 merger & acquisition (M&A)

deals worth US$ 1.47 billion

The exports of Indian pharmaceutical industry to the US will get a boost, as branded
drugs worth US$ 55 billion will become off-patent during 2017-2019.

Government Initiatives

Some of the initiatives taken by the government to promote the pharmaceutical sector in
India are as follows:

In October 2018, the Uttar Pradesh Government announced that it will set up six
pharma parks in the state and has received investment commitments of more than Rs
5,000-6,000 crore (US$ 712-855 million) for the same.

The National Health Protection Scheme is largest government funded healthcare

programme in the world, which is expected to benefit 100 million poor families in the
country by providing a cover of up to Rs 5 lakh (US$ 7,723.2) per family per year for
secondary and tertiary care hospitalisation. The programme was announced in Union
Budget 2018-19.
 In March 2018, the Drug Controller General of India (DCGI) announced its plans to
start a single-window facility to provide consents, approvals and other information.
The move is aimed at giving a push to the Make in India initiative.

The Government of India is planning to set up an electronic platform to regulate

online pharmacies under a new policy, in order to stop any misuse due to easy
availability.

The Government of India unveiled 'Pharma Vision 2020' aimed at making India a
global leader in end-to-end drug manufacture. Approval time for new facilities has
been reduced to boost investments.

The government introduced mechanisms such as the Drug Price Control Order and
the National Pharmaceutical Pricing Authority to deal with the issue of affordability
and availability of medicines

Road Ahead

Medicine spending in India is projected to grow 9-12 per cent over the next five years,
leading India to become one of the top 10 countries in terms of medicine spending.

Going forward, better growth in domestic sales would also depend on the ability of
companies to align their product portfolio towards chronic therapies for diseases such as such
as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.

The Indian government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and is
expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural
health programmes, lifesaving drugs and preventive vaccines also augurs well for the
pharmaceutical companies.

Exchange Rate Used: INR 1 = US$ 0.0159 as on March 31, 2019