Indian Pharma MNC abroad

8/9/2019 Indian Pharma MNC abroad

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MBA 631NTERNATIONAL

BUSINESS

IA- PART 1

Submitted By,

Jessica Yvonne Varma

# 1321250

MBA- 1-!J" inance


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CONTENT

Sl. No. TITLE PAGE NO.1 $A%&'( 1) !*&(+ &!+*

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!ndian %.armaceutica/ !ndustry• &.e !ndian Advanta e-(esources a abi/ities• eadin om anies in t.e sector4• .a//en es aced by %.armaceutica/ !ndustry

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3

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52 $A%&'( 2) %(+ & %(+ ! '

• S eci ications• 7ua/ity• Sources o Su /y

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3 $A%&'( 3) %(+ ! ' + + *&(!'S• 9eo ra .ica/• (e u/atory• 'conomic• u/tura/

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1:6 $A%&'( 6) ! %+ ! Y (AM';+(" + $+S&

+ *&(Y

1<

5 $A%&'( 5) B ' %(!*& + B S!*'SS

• 'ntry Strate ies• Mar=etin Strate ies• Strate ies or Sustainabi/ity• inancia/ Strate ies

2021

21

22: (' '('* 'S 25


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CHAPTER – 1

INTRODUCTION – MALPASO PHARMA LTD

INDIAN PHARMACEUTICAL INDUSTRY

9/oba//y, t.e !ndian %.armaceutica/ industry is ran=ed t.ird /ar est in vo/ume terms and 10t.

/ar est in va/ue terms4 &.e sector is .i ./y =no>/ed e-based and its steady ro>t. is

ositive/y a ectin t.e !ndian economy4 &.e or anised nature o t.e !ndian %.armaceutica/

industry is attractin severa/ com anies t.at are indin it viab/e to increase t.eir o erations

in t.e country4 &.e !ndian %.armaceutica/ industry is .i ./y ra mented >it. about 26,000

/ayers ?330 in t.e or anised sector@4 &.e to ten com anies ma=e u or more t.an a t.ird o

t.e mar=et4

;it. 82 er cent o mar=et s.are ?in terms o

revenues@, eneric dru s orm t.e /ar est se ment

o t.e !ndian .armaceutica/ sector4

!ndian %.arma com anies .ave a /ar e c.un= o

t.eir revenues comin rom e orts4 !ndia e orts%.armaceutica/ roducts to more t.an 200

countries4 !n terms o va/ue, e orts o !ndian

%.armaceutica/ roducts increased at a A9( o

2:41 er cent to touc. S 1041 bi//ion durin Y0:-134

%.armaceutica/ e orts are e ected to cross

t.e (s 1 tri//ion ? S 1:418 bi//ion@ mar= t.is

year4 urin 2013-16, %.arma e orts stood at

(s C0,000 crore ? S 16455 bi//ion@4 +ut o t.is,

t.e s.are o ormu/ations >as 81 er cent4 &.e

Ministry o ommerce tar ets to e ort S 25

bi//ion >ort. o .armaceutica/s in 201:4

!ndia current/y e orts dru intermediates, Active %.armaceutica/ !n redients ?A%!s@,

inis.ed osa e ormu/ations ? s@, bio-%.armaceutica/s, and c/inica/ services across t.e

/obe4 ;.i/e some are ocusin on t.e enerics mar=et in t.e S, 'uro e and semi-re u/ated


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mar=ets, ot.ers are turnin t.eir attention to custom manu acturin or innovator com anies4

Bio %.armaceutica/s is a/so increasin /y becomin an area o interest iven t.e com /e ity in

manu acture and /imited com etition4

!ndia is a si ni icant

manu acturin base or

t.e %.armaceutica/

industry4 !ndian

com anies /ive in an

intense/y com etitive

environment4 Most !ndiancom anies ma=e t.eir

o>n bu/= actives4 A ter

/ibera/iDation, !ndian com anies .ave bui/t ( ca abi/ities t.at .ave en.anced t.eir

innovative abi/ity4

THE INDIAN ADVANTAGE- RESOURCES & CAPABILITIES

!ndian %.armaceutica/ industry today is a =no>/ed e intensive industry4 !ndian com anies

.ave acEuired over 15 com anies in 'uro e and t.e S over t.e /ast 10 years4 &.e

For aniDedG sector o !ndiaHs %.armaceutica/ industry consists o 250 to 300 com anies,


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>.ic. account or 80 ercent o roducts on t.e mar=et, >it. t.e to 10 irms re resentin 30

ercent4 $o>ever, t.e tota/ sector is estimated at near/y 20,000 businesses, some o >.ic. are

e treme/y sma//4 A ro imate/y 85 ercent o !ndiaHs demand or medicines is met by /oca/

manu acturin !ndiaIs %.armaceutica/ sector is current/y under oin un recedented c.an e4

Muc. o t.is is due to t.e introduction o roduct atents in 2005, be ore t.at, on/y rocess

atents >ere ermitted to be issued4 &.is .as been instrumenta/ to t.e domestic industryIs

.u e success as a >or/d>ide e orter o .i .-Eua/ity eneric dru s4

LEADING COMPANIES IN THE SECTOR

!n t.e ast ten years, !ndian com anies .ave moved beyond t.eir traditiona/ e ort roducts

/i=e tea, co ee, /eat.er, iron ore, etc4 to so t>are and %.armaceutica/ roducts artici atin in

>.at is ca//ed as t.e ne> a eI industries t.at are tec.no/o y-=no>/ed e-service-intensiveI4

&.e success ac.ieved by t.e ne> enre o com anies is a/so due to t.eir care u/ se/ection o

mar=et se ments to artici ate in4 or e am /e, t.e %.armaceutica/ maKors essentia//y

artici ate in t.e eneric se ment o t.e %.armaceutica/ industry and not in t.e researc.-

intensive ne>-to-t.e->or/d roducts se ment4 orei n com anies >.o came to ta t.e

midd/e-c/ass mar=et discovered t.ese advanta es >.ic. t.e !ndian com anies /evera ed

a ressive/y to ta=e osition in overseas mar=ets

%.armaceutica/ industry in !ndia accounts or /ess t.an t>o er cent o t.e >or/d mar=et in

va/ue terms, des ite t.e act t.at >e are t.e t.ird /ar est in vo/ume terms


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9oin /oba/I and 9oin

internationa/I are entire/y

di erent4 or oin /oba/,I

one reEuires a /oba/ mind-

set and /oba/ as irations4

Becomin internationa/I

.istorica//y meant su /yin

out o !ndia4 You do not

.ave to be /oba//y

com etitive in t.e true sense

to e ort out o !ndia4 !nsome areas, you may not be /oba//y com etitive4 9oin internationa/ on/y means /evera in

some country and com any advanta es to ta overseas mar=ets4

oo=in at some o t.e success stories o com anies /i=e Sun %.arma, usin t.eir eneric

mar=et ca abi/ities .avin 2: manu acturin units across our continents4 !t .as more t.an 82

ercent o its sa/es comin rom internationa/ mar=ets4 i /a .as resence in more t.an 1:0

countries and it out er ormed ot.er /oba/ .arma maKors by o erin atented anti-A! S

dru s at a ordab/e rices4

!ndian %.armaceutica/ industry .as one o t.e ric.est resources in manu acturin , researc.

ca abi/ities, and entre reneurs.i 4 +ur industry .as ca abi/ities and ca abi/ities across t.e

va/ue c.ain and, >e are cost com etitive across t.e va/ue c.ain4

CHALLENGES FACED BY INDIAN PHARMECEUTICAL INDUSTRY:

Price Controls:

%rice contro/s are broad/y cited as t.e most critica/ c.a//en e t.at com anies ace in t.e!ndian mar=et4 !ndia is one o t.e most rice-contro//ed mar=ets in t.e >or/d, as under t.e

% +, rices and mar ins are monitored care u//y4 &.e % + is bein su ervised by t.e

*%%A4 %rice contro//ed dru s are essentia/ medicines, suc. as antibiotics and ain=i//ers, and

dru s used or t.e treatment o diseases suc. as cancer and ast.ma4

Infrastructure:

!n rastructure .as a/>ays been mentioned as a barrier to ro>t. o t.e %.arma industry in

!ndia4 %oor ener y and trans ort in rastructure .as traditiona//y osed a rob/em or


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com anies4 Some areas /ac= basic .ote/ aci/ities, reventin reac. and enetration4 ;it. t.e

overnment radua//y increasin investment in in rastructure, t.e situation is im rovin , but

it is sti// seen as an investment o ortunity in !ndia4

Counterfeiting:-

ounter eitin o dru s .as been a maKor issue in t.e !ndian %.arma s ace4 &.e in.erent

nature o t.e !ndian mar=et ma=es it di icu/t or a systematic study t.at Euanti ies t.e e tent

o counter eitin , to be carried out4 +r anisation o %.armaceutica/ %roducers o !ndia ?+%%!@

.as a/so carried out various initiatives to combat t.e situation /i=e or anisin seminars and

>or=in >it. t.e Ministry o $ea/t. to>ards t.e deve/o ment o o/icies a ainst s urious

dru s4

Intellectual Property:-

!ndia .as acce ted and made a commitment to t.e &rade-(e/ated As ects o !nte//ectua/

%ro erty (i .ts ?&(!%S@ in 1CC5, and =ee in >it. t.is commitment, im /emented t.e %atent

?Amendment@ Act in 20054 A/t.ou . t.is act does not a /y or dru s atented be ore 1CC5, it

is a maKor ste or>ard on t.e ear/ier atent scenario4 Since t.en, recommendations .ave been

made to t.e overnment re ardin im rovement and e ansion o t.e %atent ?Amendment@

Act, by t.e Sat>ant (eddy committee and t.e Mas.e/=ar re ort4 &.ese re orts .i ./i .tedt.e need or data e c/usivity and t.e revention o ever reenin I4

+vercomin t.e c.a//en es t.at e ist in t.e mar=et is a =ey im erative or uture ro>t.4


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CHAPTER TWO:

PRODUCT PROFILE

SPECIFICATIONS:-

&>o se ment o roducts are e orted4 Bu/= dru se ments and ormu/ations4 Bu/= dru s are

active .armaceutica/ in redients ?A%!s@ >it. medicina/ ro erties, >.ic. are used to

manu acture ormu/ations4 + t.e tota/ number o .armaceutica/ manu acturers, about 88L

roduce ormu/ations, >.i/e t.e remainin 23L manu acture bu/= dru s4

Bulk Drug

&.e !ndian .armaceutica/ industry manu actures about 600 bu/= dru s be/on in to various

t.era eutic se ments4For!ul"#$o%

ormu/ations are t.e end- roducts o t.e medicine manu acturin rocess, and can ta=e t.e

orm o tab/ets, ca su/es, inKectab/e or syru s, and can be administered direct/y to atients4

Based on t.e .armaceutica/ customer base, t.e !ndian A%! manu acturin se ment can be

divided into our arts branded, eneric, +ver-t.e-counter, and atented roducts4


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Branded Generics:-

&.e to brands in t.is cate ory are ore , %.ensedy/ ou . and Voveran4 &.ese dru s a/so

.ave a brand remium >.ic. di ers bet>een t.era eutic areas4 or e am /e)

&.e number 1 ran=ed brand or t.e

mo/ecu/e Amo ici//in /avu/anate,

Au mentin, commands a remium

as .i . as 2:0L over t.e ne t-in-

/ine brand Mo i=ind- V, and 101L

over t.e t.ird ran=ed brand /avam4

!nnovator brands can command

.i . remiums over branded enerics4 or e am /e, (is erda/, an innovator brand,

commands a 106


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urrent/y, t.e mar=et s.are o eneric enerics is very /o>4 ;e see t>o main .urd/es to ure

enericisation o t.e !ndian mar=et)

14 ac= o eneric enerics re u/ations and uide/ines or t.e estab/is.ment o bio-

eEuiva/ence, or e am /e t.e Abbreviated *e> ru A /ication ?A* A@ uide/ines t.ate ist in t.e 4S4

24 octor com ort derived rom rescribin medications on t.e basis o brand name4

A ood e am /e or t.is is t.e overnment run- Jan Aus.adiI ro ramme4 &.ey rovide no-

name eneric dru s at t.eir subsidiDed rices in 26-.our .armacies a// over t.e country4

Over-the-counter Products:

&.e +& mar=et >as >ort. about S 14< bi//ion in 2012, and %> estimates t.at by 2020, it

>i// ro> to S 11 bi//ion - a A9( o 1it. t.e otentia/ to reac. S 13 bi//ion at

an a ressive A9( o 20L4

+& ru sI means dru s /e a//y a//o>ed to be so/d +ver t.e ounterI by .armacists, i4e4

>it.out t.e rescri tion o a (e istered Medica/ %ractitioner4

The OTC segment growth drivers are:-

*ovartis, % iDer and Jo.nson Jo.nson are e am /es o M* s t.at .ave a stron resence

in t.e !ndian +& se ment4

Patented Products:-

&.e mar=et siDe or atented dru s as o today is very sma//4 ;it. ro>in a ordabi/ity,

dee enin o .ea/t. insurance and steady im rovement in !nte//ectua/ %ro erty (i .ts ?!%(@,

atented roduct /aunc.es s.ou/d increase ivin reat o ortunity or !ndia4


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These are the major products we have chosen for our International Business abroad:-

• orticosteroids• Anti-Ast.matic• Anaest.etics• Anti- iabetics• Anti-&ubercu/osis• !ntermediates• Anti-$y ertensive• Anti- e ressants• Antibiotics

UALITY:-

!ndian (e u/atory Bodies or 7ua/ity ontro/ in %.armaceutica/ industry)-

The Central Drug Standards and Control Organization (CDSCO)

&.e S + is /ocated under t.e Ministry o $ea/t. and ami/y ;e/ are4 !t rescribes

standards and measures or ensurin t.e sa ety, e icacy and Eua/ity o dru s, cosmetics,

dia nostics and devices in t.e countryN (e u/ates t.e mar=et aut.oriDation o ne> dru s and

c/inica/ tria/s standardsN su ervises dru im orts and a roves /icenses to manu acture4

The National Pharmaceutical Pricing uthorit! (NPP )

&.e *%%A instituted in 1CC8 under t.e e artment o .emica/s and %etroc.emica/s4 !t

maintains data on roduction, e orts and im orts and mar=et s.are o .armaceutica/ irms

and im artin in uts to %ar/iament in issues ertainin to dru ricin 4

"arious cts governing the regulation o# $ualit! standards:-

• ru s and osmetics Act o 1C60 and (u/es 1C65 re u/ates dru manu acturin ,

Eua/ity and mar=etin 4• %.armacy Act o 1C6<• &.e ru s and Ma ic (emedies Act o 1C56, etc4

%nternational standard o# &harmaceutical machiner!:-

• StandardiDation• %.armaceutica/ 7ua/ity System !S+-C001• 'very .armaceutica/ com any needs to meet t.e /atest 9M% com /iance• 9M% >ou/d >ant t.e mac.inery manu acturers to o//o> a set o rocedures and ru/es

>it. ro er documentation in t.e manu acturin 4

SOURCES OF SUPPPLY


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&.e domestic bu/= dru industry is oised to bene it rom t.e im endin atent e iries in

t.e re u/ated mar=ets /eadin to increase in eneric enetrationN t.ereby rovidin a

si ni icant o ortunity or su /y o A%!s to manu acturers o suc. eneric dru s cou /ed

>it. increased outsourcin o bu/= dru s by mu/tinationa/ .armaceutica/ com anies4

&o ain more contro/ over bu/= dru su /ies, >e .ave increased our bac=>ard inte ration in

=ey A%! se ments4 !n addition to t.e a arent bene its o reater cost e iciencies and Eua/ity

contro/, in-.ouse A%! manu acturin aci/ities o er reater manu acturin /e ibi/ity and

minimises t.e re/iance on t.ird arty su /iers4

As many o t.e maKor Mu/tinationa/ .armaceutica/ com anies .ave ado ted, >e are

o//o>in a artners.i arran ement >it. su /iers eit.er t.rou . outsourcin contracts or

/on term a//iances4 &.is >i// .e/ ma imise cost e iciencies4

or e!ample" some of the major tie-ups between pharmaceutical companies and domestic

#PI suppliers are:

A =ey c.a//en e .o>ever >ou/d be to >in t.e con idence o eneric manu acturers as a

re/iab/e and cost com etitive su /ier4


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CHAPTER 3:

COUNTRY PROFILE

The main importers of Indian Pharmaceutical products are:-

?Va/ue in Mi//ion S @

More t.an Kust c.ea eneric dru s, >it. e orts ro>in at near/y 30L er year, !ndiaHs

.armaceutica/ industry is >e// ositioned or reater researc. s ends4 +ver t.e /ast t.ree

years e orts o .armaceutica/s ?/ar e/y enerics@ .ave ro>n at over 2145L and no>

accounts or over S 13 bi//ion in annua/ sa/es4 $i ./i .tin !ndiaIs dominance, near/y

60L o Abbreviated *e> ru A /ications ?A* A@ received by t.e A in 2012 >ere

rom !ndia, >it. a urt.er een January and

June 20134

$oo%ing at the top &' (lobal mar%ets for generic drugs:-


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.an es in t.e /oba/ /andsca e brou .t about by t.e increasin costs o .ea/t.care and

dryin ( i e/ines .ave been ab/e to create a number o o ortunities or !ndian /ayers4

&.e S and ' mar=ets .ave been t.e /ar est im orters o !ndian roducts, but increasin

scrutiny in t.ese eo ra .ies is t.reatenin e ort revenues and !ndian com anies >ou/d

.ave to /oo= at ris= miti ation strate ies4 nderstandin mar=et dynamics >i// be im erative

in determinin t.e e tent o ro>t. and reac. t.at !ndian com anies >i// be ab/e to ac.ieve4

;it. !ndian roducts com etin >it. t.eir /oba/ counter arts in terms o Eua/ity, !ndia .as

been ab/e to estab/is. a /oba/ oot rint4 !ndian com anies o eratin in t.e >est .ave been

ab/e to do so success u//y, but, mar=ets suc. as Ja an, arts o Sout. America, 9u/

oo eration ounci/ ?9 @ and ommon>ea/t. o !nde endent States ? !S@ sti// remain

unta ed and can be e /ored4 'ar ets that e have selected to enter:-

14 9u/ oo eration ounci/ >.ic. inc/udes Ba.rain, "u>ait, +man, 7atar, Saudi

Arabia, and t.e nited Arab 'mirates424 atin American ountries t.at inc/use, Ar entina, .i/e, BraDi/, Me ico, etc4

GEOGRAPHY:-

&) (CC

&.e 9 is .ome to 30,8ners.i com anies4 ;it. 2,5C2

com anies comin on board in 2013 a/one t.eir annua/ ro>t. .as been Euite substantia/ over

t.e ast years4 Mean>.i/e, 2,106 com anies came on board in 2010 as >ere 2,386 in 2011

and 2,:60 in 2012 avera in 2,000 ne> com anies settin u businesses in ubai annua//y4

&.is trend c/ear/y s.o>s t.e attractiveness o 9 Is com etitive business environment to

!ndian businesses4 +t.er actors are eo ra .ica/ ro imity o !ndia to some o t.e 9

countries /i=e ubai as t.is ma=es t.e cost o s.i in /o>er as t.e country can Euic=/y

su /y res. roducts to t.e A'4 A/so, t.e resence o /ar e o u/ation o !ndians /eads to

demand or t.eir countryIs roducts .ere4

&.e re/ation bet>een 9 and !ndia .as urt.er stren t.ened over t.e /ast decade, >it. t.e

increasin im ort o oi/ and as, ro>in trade, investment o ortunities and resence o a

/ar e !ndian dias ora4 A/so t.e /oba/ economic s/o>do>n and its im act on t.e deve/o ed

economies .ave rom ted a oo= 'astI o/icy rom t.e 9 nations, >.ic. .as en.anced

t.e si ni icance o !ndia as a otentia/ investor4 &.ou . t.ere .as been si ni icant ro>t. in

bi/atera/ trade bet>een t.e t>o re ions, t.e ro>t. in investment /o>s .as been /imited so


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ar4 $o>ever, !ndiaIs ro>in si ni icance as one o t.e astest ro>in /oba/ economic

o>er.ouses, driven by t.e momentous sur e in domestic consum tion and ro>in er

ca ita income .as ro e//ed many !ndian cor orates into t.e /ea ue o /oba/ mu/tinationa/s4

As a art o t.eir ro>t. initiatives, t.ese cor orates scouts or attractive overseas investment

o ortunities4 9 Is investor riend/y economic environment, eo ra .ica/ ro imity and

in.erent advanta es in ener y-intensive manu acturin .o/d tremendous otentia/ or

attractin urt.er investments rom !ndian industries4 Accordin to t.e overseas investment

data re/eased by t.e (eserve Ban= o !ndia, investments by !ndian irms in 9 .ave been

on t.e rise in t.e recent years4 !ndian irms .ave been investin in 9 countries across

sectors /i=e manu acturin , inancia/ services, rea/ estate construction, trade .os ita/ity,

a ricu/ture minin 4

*) $atin #merican Countries:-

&.e !ndia- atin America economic re/ations.i .as evo/ved si ni icant/y over t.e ast

decade, >it. ne> investments and va/ue-added businesses t.at su /ement t.e /ar e trade in

commodities4 !ndiaIs tota/ trade >it. atin America or 2012-13 is 61 bi//ion ' but Kust

1345 bi//ion are e orts, t.e /ar er c.un= bein im orts /ar e/y com risin oi/, minera/s and

a ricu/tura/ roducts ?Ministry o ommerce !ndustry, 2013@4

&.e .armaceutica/ mar=et in BraDi/, at an estimated 2: bi//ion a year, is t.e re ionIs

/ar est4 &.e enerics mar=et is ro>in ra id/y but is unta ed sti//4 9enerics account or

on/y one- ourt. o .armaceutica/ dru s so/d in BraDi/ muc. /o>er t.an t.e rou ./y 50 L

so/d in t.e 4S4 but sa/es o eneric dru s in BraDi/ are stron , increasin by 53 L in 2012

? atinve , 2013@4 &.e !MS onsu/tin 9rou .as inc/uded ive atin American

countries ' BraDi/, Ar entina, Me ico, o/ombia and VeneDue/a ' as art o t.e

%.armer in mar=ets t.at Oremain t.e /oba/ ro>t. en ineP or t.e .armaceutica/ sector4

REGULATORY ENVIRONMENT:-

&) (CC:-

&.e 9u/ coo eration counci/ ?9 @ re ion is considered as F'mer in mar=etG or

.armaceutica/ e ort and bi/atera/ trade4 &.e understandin o t.e re u/atory reEuirements

o t.is re ion can be bene icia/ or .armaceutica/ e ort4 Some incidents o t.e year 200do>n in .i ./y >e//-o and re u/ated mar=et o t.e '

and S, raised t.e demand or a/ternate destinations or business4 &.e re u/ations o 9u/


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countries are encoura in t.e im ort o Eua/ity eneric roducts, >.ic. can be ood ne>s to

t.e !ndian dru manu acturers4

Based on res onses rom 215 re resentatives o /eadin .armaceutica/ manu acturers in

!ndia and t.ose re istered in t.e si 9 countries, t.e ! ! study ound an over>.e/min=eenness to ta t.e 9 mar=et4

Accordin to a ! ! survey re ort F&.ere is a considerab/e sco e or increasin our e orts

o dru s and .armaceutica/ roducts to 9 countries, name/y Saudi Arabia, "u>ait,

Ba.rain, 7atar, nited Arab 'mirates and Su/tanate o +man

+ ortunities in t.e 9u/ oo eration ounci/ mar=et

•

9 countries- in

desire o !ndia to secure ener y su /ies urt.er stren t.ened economic and business ties or

mutua/ bene it4

&.ere is a t>o->ay /in= bet>een 9 and !ndia t.rou . trade and investments4 9 is o

vita/ im ortance or !ndia, iven t.e increasin im ort o oi/ and as, ro>in trade,

investment o ortunities and resence o a ro imate/y 840 mi//ion !ndian e atriates>or=in in t.e re ion4

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3122046/#CIT7http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3122046/#CIT7


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9 -!ndia bi/atera/ trade increased at a A9( o 1046L to S 15040 bi//ion over 200C 164

urin t.e eriod, trade /o>s rom 9 to !ndia e anded at a A9( o 1143L to S

1014< bi//ion, >.i/e trade rom !ndia to 9 rose at a A9( o as driven by numerous a reements and !ndiaIs increasin oi/

im orts4

(CC- India Bilateral Trade:

*) $atin #merican Countries:

&.e .armaceutica/ sector re resents about 15 er cent o !ndiaIs e orts to t.e A re ion4

!ndicatin t.e be innin o strate ic en a ement in .armaceutica/s, !ndia and BraDi/ .ave

coo erated in i .tin t.e 'uro ean nionIs i//e a/ c/am do>n on enerics trade4 "ey non-

de ence sectors in !ndia- A trade are - ener y, minera/s, .armaceutica/s c.emica/s,

a ribusiness, !& !&'S, etc4

CULTURAL TIES (ITH INDIA:-

a) (CC:-

9 and !ndia .ave traded >it. eac. ot.er since /on 4 'very year, t.ousands o !ndian

i/ rims er orm $aK ritua/s in Saudi Arabia, urt.er stren t.enin t.e cu/tura/ bond4 ecades

o commercia/ en a ements bet>een t.e t>o .ave ostered and nouris.ed mutua/ ties4

9ro>in bi/atera/ trade and t.e !ndian e atriate o u/ation .ave urt.er stren t.ened t.ese

ties4

!ndian e atriates in 9 countries)-


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b) $atin #merican Countries:

n/i=e t.e re u/ar mode/ o trade >.ere !ndia e orts inis.ed roducts and im orts ra>

materia/s, .ere !ndia e orts ra> materia/s t.at atin America can add va/ue to and se//

>it.in its o>n mar=ets4 &.is is a .ea/t.y bi/atera/ arran ement t.at bui/ds con idence4


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CHAPTER 4:

FDI POLICY OF HOST COUNTRIES

INVESTMENTS:

!n 2013, tota/ orei n direct investment ? !@ to 9 rom !ndia stood at S 241 bi//ion4

&.e cumu/ative ! out /o>s rom !ndia to t.e 9 re ion durin 200< 13 stood at S C48

bi//ion, re isterin a A9( o 840L4 Mean>.i/e, cumu/ative ! out /o>s rom 9 to

!ndia durin 200< 16 stood at S 24C bi//ion, re isterin a A9( o 243L4 &.e sectors t.at

attracted most investments inc/ude o>er, construction, services, and meta//ur ica/ industries4

Accordin to t.e overseas investment data re/eased by t.e (eserve Ban= o !ndia,

investments by !ndian irms in 9 .ave been on t.e rise4 &.e A' is t.e most avoured

investment destination, accountin or around s rom !ndia to t.e

re ion in 20134 es ite bein t.e /ar est reci ient o ! rom /oba/ investors ?5:40L o

cumu/ative in /o>s over 2000 12@ amon 9 countries, Saudi Arabia attracted Kust 1243L

o !ndiaIs out>ard ! to 9 in 20134

+I flow to (CC from India , . / 0illion1:-

"ey actors rivin ! 9ro>t. in 9 )-

• 'conomic rivers)

9 nations and !ndia .ave re istered stron 9 % ro>t. over t.e ast decade, .e/ in

t.em ain si ni icant economic stren t.4 9 Is main ro>t. drivers >ere .i . ener y

rices, /ibera/iDation initiatives to attract more ! and economic diversi ication to reducede endence on its mainstay, t.e oi/ and as sector4 !ndia, on t.e ot.er .and, >itnessed a sur e


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in economic activities ost t.e 1CC1 economic /ibera/iDation t.at o ened t.e domestic

mar=ets to orei n investments4

• 9 countriesI ro>in economic stabi/ity)

ontinued investments on t.e overnmentIs art to e and and moderniDe basic

in rastructure .as .e/ ed t.e re ion to attract /oba/ investors4 Si nin o an im endin ree

trade a reement bet>een 9 and !ndia >ou/d urt.er o en u t.e mar=et or !ndia-based

com anies4

• !nvestment Barriers)

9 countries a/so o//o> diver ent standards re ardin ! re u/ations4 !n addition,

absence o a com etent investment aut.ority in t.e re ion remains a dra>bac=4 A/t.ou .

measures .ave been ta=en to im rove t.e investment environment, underdeve/o ed ca ita/

mar=ets are sti// an im ediment to investments4 &.ou . t.e recent vo/ati/ity e isode >it.

!ndian ru ee .as receded, /ac= o currency stabi/ity serves as a barrier to t.e cross-border

investments4 &.e (B!Is im osition o increased restrictions on overseas investments by

!ndian irms, iven t.e vo/ati/ity aced by t.e !ndian (u ee ?>.ic. de reciated more t.an

2040L in 2013 to an a//-time /o> o :as

/i ted in Se tember 20134 &.e (B! eased t.e recent curbs by a//o>in irms t.at .ave raised

unds via t.e e terna/ commercia/ borro>in ?' B@ route to invest u to 600L o t.eir net

>ort. a ainst a mont. a o /imit o 100L4

Because o t.e overa// ease and stren t. in t.e !ndia-9 economic and cu/tura/ re/ations, it

is im erative to use Joint-Ventures, Mer ers as a mode o entry or t.ey can use t.e traditiona/

e ort mode o business >.ic. current/y re resents maKority o t.eir business in 9

countries4


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CHAPTER 5:

BLUE PRINT OF BUSINESS

ENTRY STRATEGIES FOR INDIAN MNC:-

'ntry barriers di er immense/y rom mar=et to mar=et re ion to re ion in t.e nationa/

mar=ets4 /assic issues needed to overcome inc/ude deart. o in rastructure, c.a//en es in

areas /i=e roduct distribution su /y c.ain mana ement4

Some o t.e >ays t.e com any can enter t.e mar=et are)-

• Through Partnering:-

%artnerin , >it. a /oca/ /ayer >ou/d robab/y cra t a F>in->inG situation, em o>erin t.e

mar=et entrant to bene it rom t.e artnerIs e istin resence and .ome country mar=et

understandin to estab/is. o erations, bui/d mar=et s.are and s>i t/y overcome /oca/

.indrances4

• #c2uisition:-

Buyin an a/ready re uted /ayer in an embryonic mar=et enab/es a orei n com any >it. an

a/ready constructed /oca/ osition t.at it can u//y assimi/ate into its /oba/ o erations >it.time4

• Manu acturin in $ome country and ta in t.e overseas mar=ets t.rou . direct or

indirect e orts)-

&.e main bene its o t.is are t.at t.ere are no cu/tura/ or /an ua e barriers, .i .er and

Euic=er turnaround, .i .er rotection on inte//ectua/ ro erty ri .ts, etc4

•

3!port 4ouses:-&.e e ort merc.ant .ouses /ay a dynamic ro/e in endorsin e orts to orei n /ocations4 !n

t.is scenario t.e manu acturers de/e ates t.e Kob o se//in t.e roducts abroad to s ecia/ist

a encies - &.e ' ort $ouses4 &.e main disadvanta e >it. t.is is t.at, t.e manu acturer .as

minima/ contro/ over t.e mar=et4

• $icensing:-

icensin is t.e /o>est-cost o tion to e and mar=et access, but bearin a .i . brand t.reat

and restrictive otentia/ to e /oit t.e /oca/ mar=et o ortunities4 &.e current trend t.ou . is


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more on out-/icensin , yet t.ere is increasin in-/icensin activities, >it. /ar e

.armaceutica/ brands /icensin out t.eir very vita/ ( activities, redominant/y c/inica/

tria/s4 icensin acts are increasin /y bein used to ma ni y t.e roduct ort o/io,

su /ement researc. e ort strate ica//y enter ne> mar=ets4

• 5oint 6entures:-

Joint Ventures a/most imitate t.e /icensin arran ements, but norma//y di er in t.e, eEuity

artici ation and mana ement in t.e /oca/ irm4 !n case o a Joint Venture, t.e artici atin

irms enera//y bear an eEua/ s.are in t.e eEuity artici ation and mana ement in t.e /oca/

irm4

• #c2uisition:-

AcEuisition) AcEuirin a orei n com any >it. a// its assets and /iabi/ities is t.e astest >ay

to enter a mar=et t.an deve/o in o>n aci/ities4

MAR)ETING STRATEGIES TO BE EMPLOYED:-

&.e abi/ity to create stron brand eEuity by en a in in ort o/io mar=etin is a =ey actor or

success in emer in mar=ets4 &.e stren t. o t.e sa/es and mar=etin or aniDation and its

ca abi/ities in terms o ie/d sa/es, romotions, mar=et researc. can /ay a critica/ ro/e4

%.ysician en a ement and t.e creation o brand eEuity can be even more im ortant or t.e

success o t.e branded eneric >.en t.e ori ina/ dru .as been o - atent or some time and

ot.er enerics .ave a/ready been /aunc.ed in t.e mar=et4

%romotiona/ activities can .e/ M* s maintain t.e re/evance o branded eneric o erin s in

a mar=et, and doin u ront ort o/io /i ecyc/e /annin and ta=in ste s to understand tar et

se ment needs can /ace t.e M* in a stron commercia/ osition >it. its branded eneric

o erin s4 A mu/ti-c.anne/ mar=etin strate y /evera in ne>/y ado ted c.anne/s ?suc. as

di ita/ access@ .as t.e otentia/ to reac. a broader audience to de/iver core branded enerics

messa in 4 +ne =ey oa/ o t.is strate y is insti//in trust and reco nition amon .ea/t. care

roviders and consumers or t.e .armaceutica/ arent com any4

STRATEGIES FOR SUSTAINABILITY:-

&oday, businesses are be innin to understand t.at sustainabi/ity is not on/y about bein

environmenta//y riend/y4 !t is about business, >.ic. u/timate/y means it is about money4 !

im /emented >e//, sustainabi/ity can contribute ositive/y to a com anyIs inancia/ resu/ts4


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'stab/is.in /oca/ ca abi/ities in emer in

mar=ets can be a c.a//en e or /oba/

.arma /ayers, but t.e bene its can besi ni icant4 oca/ roduction can .e/

or aniDations s.orten su /y c.ains, avoid

currency /uctuations and better understand a

mar=etIs uniEue as ects, inc/udin

distribution oddities4 urt.ermore, settin u

/oca/ ( ca abi/ities can .e/ com any

attune t.eir roduct ort o/ios to meet t.eur ent needs in t.e country, and .irin and retainin /oca/ ta/ent can enab/e irms to bene it

rom emer in mar=etsI resources4

FINANCIAL STRATEGIES:-

Ac.ievin year-on-year cost reduction in t.eir overa// s endin by ri orous/y identi yin and

e/iminatin >astes in t.eir manu acturin and business rocesses4


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*lements o# cost reduction:

i=e any ot.er industry, .armaceutica/ cost .as severa/ direct and indirect costs)

• 'aterial cost: Around, :0 to 80L o .arma manu acturin cost is in /uenced by ra>materia/s4 &.ere ore, contro//in materia/ costs is one o t.e most im ortant areas t.at

com anies need to ocus on4• 'an&o er cost ) i=e ot.ers, t.e .arma industry a/so aces c.a//en es suc. as an

avera e 15L ro>t. in sa/aries and an a ro imate 20L attrition rate at o erative and

e ecutive /eve/4 &.ere ore, contro//in man o>er cost is becomin an im ortant

a enda item or t.e to mana ement4• *nerg!: &.e .arma industry uses a variety o uti/ity eEui ment, inc/udin boi/ers, air

com ressors, c.i//ers, brine units, air .and/in units ?A$ @, vacuum um s, 9 sets,

etc4 Savin s in o eratin t.ese units rimari/y resu/t rom ensurin e iciency o t.ese

mac.ines and reventin >asta e4 om anies ty ica//y /oo= at eneration,

consum tion and distribution e iciencies4• Pac ing costs: %ac=in costs are ty ica//y .i .er or ormu/ations as com ared to

A%!4 %ac=in costs can be reduced by at /east 10L by reducin ac=in reKections and

by va/ue-en ineerin t.e ac=in desi n4• nal!sing costs: 7ua/ity costs ?7 @ in most or anisations >ere not trac=ed and it is

on/y recent/y t.at or anisations .ave started /oo=in into t.is4


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Anot.er im ortant inancia/ strate y to be o//o>ed is to mana e t.e trans er ricin 4

GCC 'ar et:-

Saudi Arabia is t.e /ar est mar=et or .armaceutica/ sa/es in 9 4 it. /oca/ irmsN

(anba y >as t.e irst !ndian com any to enetrate t.e Saudi mar=et4 &.e 9 main /ayers

in t.is sector are Abbott, *ovartis, 9/a oSmit."/ine, Astra Ueneca, Jo.nson Jo.nson, and

% iDer4

3!pected Pharmaceutical .ales in (CC nations:-


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REFERENCES:-

• .tt ) >>>4s/ides.are4net bi inda in .armaceutica/-industry-335>>4business-standard4com content b2b- .arma indian- .arma-com anies-

need-to-ta -une /ored-mar=ets-to-boost-revenues-1160C0300635 14.tm/• .tt ) >>>4business-standard4com content b2b-c.emica/s success-strate ies- or-

indian- .arma-industry-in-an-uncertain->or/d-116021801558 14.tm /• .tt ) >>>4 rocess->or/d>ide4com mana ement mar=ets industries artic/es 615285• .tt ) >>>4K t s4com admin u /oads CrY$bt4 d • .tt ) >>>4indus4or .ea/t.care Secienti icL20Sessions r4L20%4V4A aKiL20-

L20!ndianL20%.armaHsL20 ontributionL20toL209/oba/L20Mar=et4 d • .tt ) >>>4e im- .arm4com
http://www.slideshare.net/bipindapin/pharmaceutical-industry-33589145http://www.business-standard.com/content/b2b-pharma/indian-pharma-companies-need-to-tap-unexplored-markets-to-boost-revenues-114090300435_1.htmlhttp://www.business-standard.com/content/b2b-pharma/indian-pharma-companies-need-to-tap-unexplored-markets-to-boost-revenues-114090300435_1.htmlhttp://www.business-standard.com/content/b2b-chemicals/success-strategies-for-indian-pharma-industry-in-an-uncertain-world-114021701557_1.htmhttp://www.business-standard.com/content/b2b-chemicals/success-strategies-for-indian-pharma-industry-in-an-uncertain-world-114021701557_1.htmhttp://www.process-worldwide.com/management/markets_industries/articles/415275http://www.jgtps.com/admin/uploads/9rYHbt.pdfhttp://www.indus.org/healthcare/Secientific%20Sessions/Dr.%20P.V.Appaji%20-%20Indian%20Pharma's%20Contribution%20to%20Global%20Market.pdfhttp://www.indus.org/healthcare/Secientific%20Sessions/Dr.%20P.V.Appaji%20-%20Indian%20Pharma's%20Contribution%20to%20Global%20Market.pdfhttp://www.exim-pharm.com/http://www.slideshare.net/bipindapin/pharmaceutical-industry-33589145http://www.business-standard.com/content/b2b-pharma/indian-pharma-companies-need-to-tap-unexplored-markets-to-boost-revenues-114090300435_1.htmlhttp://www.business-standard.com/content/b2b-pharma/indian-pharma-companies-need-to-tap-unexplored-markets-to-boost-revenues-114090300435_1.htmlhttp://www.business-standard.com/content/b2b-chemicals/success-strategies-for-indian-pharma-industry-in-an-uncertain-world-114021701557_1.htmhttp://www.business-standard.com/content/b2b-chemicals/success-strategies-for-indian-pharma-industry-in-an-uncertain-world-114021701557_1.htmhttp://www.process-worldwide.com/management/markets_industries/articles/415275http://www.jgtps.com/admin/uploads/9rYHbt.pdfhttp://www.indus.org/healthcare/Secientific%20Sessions/Dr.%20P.V.Appaji%20-%20Indian%20Pharma's%20Contribution%20to%20Global%20Market.pdfhttp://www.indus.org/healthcare/Secientific%20Sessions/Dr.%20P.V.Appaji%20-%20Indian%20Pharma's%20Contribution%20to%20Global%20Market.pdfhttp://www.exim-pharm.com/

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