India's pharma industry is the third largest in the world in terms of ...

India’s pharma industry is the third largest in the world in terms of volume and stands 14 th in
terms of value. The domestic pharma sector continued strongly on its growth path in 2010 and
recorded a 16.5% growth during Jan-Dec. From USD 12.6 billion in 2009, it is predicated to
grow to USD 55 billion by 2020 (McKinsey Report) India will join the group of top 10 global
pharmaceuticals markets in terms of sales by 2020 with the total value reaching USD 50 billion
by then, according to Pricewaterhouse Coopers (PwC) report,”Global Pharma looks to India:
Prospects for growth”. Indian pharma industry forms around 8% of world pharmaceutical
production. This industry in India also ranks very high in terms of technology, quality and range
of medicines manufactured. It suffices around 70% of domestic demand for bulk drugs, drug
intermediaries, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles.
India’s exports in drugs, pharmaceuticals and fine chemicals in November 2010 was recorded at
US$ 763.62 million, with a growth rate of 9% as compared to the same period in 2009, according
to DGCIS.
Pune has emerged as a Pharmaceutical Hub. It is now
well-known as a research hub for knowledge based industries. While Hindustan Antibiotics, the
first public sector pharmaceutical company founded in 1950, was instrumental in creating a
corporate culture in the social life of Pune in the immediate post independent era, National
Chemical Laboratory and BAIF Laboratories have played an enormous role for the growth of
this city to become an attractive destination for the research oriented pharmaceutical and
biotechnology companies. NCL, which has made remarkable contribution to the growth of
Indian research capabilities in applied and industrial chemistry, has turned to be an important
research partner to the pharmaceutical sector not only in the country but internationally. NCL's
partnership and its research base were the key motivation to many domestic and foreign pharma
companies to set up their R&D centers here.
The state-of-art fully integrated R&D set up of Lupin Limited at Mulshi Near Pune, is a classic
example of the NCL's motivation and the expanded production facility and research setup of
Intervet India (the former Hoechst Roussel Vet) at Wagholi is greatly attributed to the resource
base of BAIF Lab.

Pune has captured the world attention by first ayurvedic drug getting US patent, introduction of
new combined vaccines, first CD on ayurveda, ayur-drugs for selective parent-hood and the list
goes on.
In Pune, there are more than 35 pharmaceutical companies, which employ approximately 5,000
personnel and generate total revenues of around Rs 500 crore to the country’s pharmaceuticals
production. The pharma industry in an around Pune, developed gradually after Independence.
T. Walker Pharmaceutical manufacturing small volume parenterals, Libra Drugs, Eisen
Pharmaceuticals, Varma Pharmacy, Ayurved Rasshala and the PSU Hindustan Antibiotics are
the pioneers in Pune pharmaceutical belt.
Thirty years after Independence, several pharmaceutical companies emerged. Litaka
Pharmaceuticals of Boras Group, Biostar Pharmaceuticals, Knoll Pharmaceuticals, Nulife
Pharmaceuticals, Emcure Group etc to name a few.
The top players with diverse products and capabilities have also found their place in Pune. Serum
Institute of India, the largest vaccine producer and exporter from the country, Ventri Biologicals,
Hoechst Roussel Vet, Brihans, Ultrapure and Ma-care manufacturing human and veterinary
drugs are majors among them.
In 1990, companies like Cipla, Crossland - now a part of Ranbaxy, Boots - now taken over by
Knoll, Aqua Fine Injectables started their operations. Companies like Miami of Tata group,
(currently Micro Lab) Fresenius Mafatlal (currently Fresenius Kabi India) also made the Pune
Pharmaceutical belt rich. Bio-ved Pharmaceuticals, Akshaya Remedies, SPB Pharmaceuticals,
Resilient, Backson, Novatrend, Pure Health Products, Prophyla Biologicals, Sharp Enterprises,
Sharangdhar Pharmaceuticals, Omni Cure, Ganraj Pharmaceuticals have also made significant
contributions to Pune pharma sector with their unique research and development efforts.
For pharmacy consultancy, Perfect Consulting Group, Insight System and Adbeez group act as a
catalyst for quality growth. Pune district has 200 distributors, 3000 medical shops, 20 big
hospitals, 10,000 physicians to help pharmaceutical industries and patients.
Pharmacy education started in Pune by IPA - Pune Branch with D. Pharm College in 1968.
Currently, University of Pune is one of the five universities in India to have a separate faculty for
pharmacy profession. Bharati Vidyapeeth''s Poona College of Pharmacy is the first institution in
the country to offer practical industry training along with class room study.
Other educational institutions in this area includes Dr. D Y Patil College, Stable Waghire
College, Saswad, All India Shivaji Memorial Society''s college, Maharashtra Institute of

Pharmacy, Modern College, Rajgad Dnyanpeeth College. IPER is the pioneer Pharmaceutical
Management Institute contributing in a unique way to the pharmacy profession.
In coming years, we hope that this spectacular growth story continues with lot of research put in
new product development which not only cures but prevents the impending medical difficulties.
Mr. Ulhas Puranik,
Director, Hanul Medizine Pvt Ltd and Drug Inspector, Food & Drug Administration,
Maharashtra State(1994-2003)
1. Can you give the brief overview of the Pune pharmaceutical sector?
Over all, Pharmaceutical Industry in Pune is still in the early development stage
compared to other parts of India as well as for that matter, rest of Maharashtra. Although
we have National Institutes like NCL, NIV, NCCS in Pune, in my opinion potential is
untapped. Barring few Indian Pharmaceutical Companies such as Serum Institute of
India, who is in to Vaccines and Biologicals, Emcure Pharmaceutical Ltd.,who is a big
name in India for quality, no other Indian pharmaceutical company has presence in
Pune. Few multinationals are there but not substantial which includes Fressenius Kabi
and 3M etc. at Ranjaongaon. They are into manufacturing of pharmaceuticals
but considering their business volumes the output from these units is very small.
2. How has been the growth of this sector in Pune? What are the factors contributing
to this growth?
Growth of this sector in Pune is slow and might be even low in percentage as far as
National growth of this sector is concerned. Pharmaceutical Industry is growing at a
speed of 13-14% per annum. But due to lack of Govt. support, high over head costs and
infrastructure costs, the growth is restricted. Pune, we have maximum number of
Pharmacy colleges due to which technical man power is available, Pune is on the verge of
becoming a metro city like Mumbai hence people are attracted to the growth model and
are willing to come to Pune. As mentioned above, we have Pune University,

NCL, NCCS, NIV like referral national institutes. We have Infrastructure like ITBT park
in Hingewadi, hence the potential is big but the proper and planned efforts are required.
3. What are the challenges as far as research and development is concerned in Pune
pharma sector?
Basically not only Pune but the entire pharmaceutical Industry in India has seen lot of
turbulence due to Central Govt policies in last decade. At present few states in India such
as Himachal Pradesh, Uttarakhand, Jammu and Kashmir and Sikkim etc. enjoys the tax
holidays which include 100% Income tax benefit for first 5 year then 50% for next 5
years and Central Excise Tax as well as Sales Tax exemption for entire 10 years period.
Due to which the majority of companies have started their plants in these states or they
outsource their products from these areas. Maharashtra is the only state in India wherein
Octroi is still levied, which is another negative point against the industry. Multinationals
as well as Big Pharmaceuticals will not have major impact of such policies but the
contract manufacturing units or SSI, who cannot go to these states, are simply on the
verge of closing down their plants.
4. What are the strategies that you think Pune sector should adopt to stay ahead
in competition?
Pharmaceutical Industry is highly Regulated by various Laws and regulation and lot of
restrictions are there for the startup companies hence it cannot grow simply like Auto or
any other Engineering Industry. Govt Support especially to Small Scale Industry is must
for their sustenance. Cluster activity supported by Govt funding and with Technical
support will help this industry. Govt. procurement from SSI in certain percentage is
another possibility which will boost the economics of SSI. Today’s era is of Merger,
Acquisition and Take over. We need to consider this option with open eye for the growth
as well as for competition. Collaboration with right partner for newer technology and the
access to innovative technology is inevitable for this industry if one needs to progress.
5. What are the future growth prospects of this segment?
Pharmaceutical Industry is part of Health sector and even in the recent financial
meltdown/ recession, this is one of the few sectors which grew in double digit in India as
well as recorded substantial growth world -wide. Due to modern life style, increasing per
capita income and most importantly life expectancy, the need of the medicines is
always on the higher side. Another area wherein this industry should focus more is on
wellness as well as nutraceutical/ dietary supplements, because this is the new area which
has more growth rate than the conventional pharmaceuticals.

6. As far as the product innovation is concerned, how well is Pune segment placed?
Precisely Pune segment is nowhere as far as basic research is concerned, it requires lot of
resources and efforts for R&D, although at a limited level, companies are doing some
innovative things but still a long way to go for the overall Indian Pharmaceutical
industry compared to Global players of this industry. We are strong in manufacturing but
as far as R&D goes, we are way behind!
7. Are there any challenges on skilled manpower or infrastructure front?
As far as man power is concerned, it is available but requires planned efforts starting
from Colleges to train them and to mould them as per the industry requirements, which is
lacking and hence over all distrust is seen both at Industry as well as at employee level.
Lot can be done in this area if educational institutes and Industry unite.
As far as Infrastructure is concerned, it is improving but not at the required speed.