Professional Documents
Culture Documents
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The Indian drug industry can be divided into bulk drugs segment and
formulations. The industry produces about 60,000 finished medicines and roughly 400
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bulk drugs, which are used in the formulations. India is one of the top five producers of
strides over the years. Today the industry is manufacturing practically the entire range of
bulk drugs in the world. The Indian drug and pharmaceutical industry has made rapid
the therapeutic products; it is capable of producing raw materials for the manufacture of
a wide range of bulk drugs from the basic stage and a range of pharma machinery and
equipment. The industry has achieved global recognition as a "low cost producer of
quality bulk drugs and formulations". Leading Indian companies have established
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marketing and manufacturing activities in over 60 countries including USA and Western
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Europe. The phenomenal progress made by the industry over the years is depicted in
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Tables 1.
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1950s
Formulations
1960s
Formulations
1970s
Formulations
Some imports.
Bulk drugs
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Year
companies
Bulk drugs
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Bulk drugs
on domestic R&D)
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Formulations
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1990s
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Formulations
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1980s
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Pharmaceutical industry in India is quite strong in global terms. Total annual sales
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of pharmaceuticals are put at Rs.25, 000 crores as per the date available for the year
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2004-2005. In terms of the volume India accounts for 6-8% of the total products of
pharmaceuticals in the world. In world ranking India stands 4th in terms of volume. In
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value terms India occupies 13th position in the world. Annual growth rate of Indian
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pharmaceutical industry is greater than 15%, the world average being 10-12%. There are
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more than 15000 units in India, engaged in the manufacturing of various pharmaceutical
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formulations. Almost 60% of the production is from the organized sector comprising of
about 40% of the annual production. State wise most of the units are located in the state
300 units. The rest of the unit belongs to small and medium sector and accounts for
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Product range includes all major categories like Antibiotics, Anti-inflammatory Drugs and
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other common remedies. Pharma industry in the SSI sector is still in its infancy in Kerala.
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Majority of the unit depends on Governments requirement for the health services alone.
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There are some units doing contract manufacture also. Manufacturers engaged in ethical
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15%
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50 crores
Liquid orals
25 lakhs liters
External preparations
10,000 kg
lakhs
vials/
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bottles
Employment Potential
1000 directly
Employment Potential
1000 indirectly
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Rs.5 crores
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Export potential
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25 lakhs liters
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Capsules
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100 crores
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Tablets
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Thiruvananthapuram
940 lakhs
Kollam
Alappuzha
Pathanamthitta
Kottayam
Idukki
Ernakulam
Palakkad
Thrissur
Malappuram
Calicut
Wayanad
Kannur
Kasargode
9
5
8
18
3
7
65
138
5
192
12
2
160 lakhs
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Employment Export
Potential
Potential/Export
during last three
years
267
Curretly
exporting to
Bahrain, U.K,
West Indies and
Hongkong
63
Nil
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Production
Capacity
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No: of
Units
engaged
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District
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36
93
29 crores
733
251
17.50 crore 498
1264
8 crores
111
520
73
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2.95 crore
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40 lakhs
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Strengths
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Opportunities
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Even though SIDBI has special schemes for modernization and expansion of
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otherwise, located in such areas are reluctant to advance loans under refinance
from SIDBI. Recent decision by SIDBI to have more branches in southern India,
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Due to financial constraints and non-availability of the right source, the current
technological advances have not reached the manufacturers.
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The government has revised the schedule M, which deals with the GMP norms, of
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the drugs and cosmetics act to make the quality of the drugs produced comparable
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with international standards. The manufacturers are to invest heavily in plant and
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the manufacturers. But the majority could not utilize these as they had either
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machinery to comply with these stipulations. SIDBI had certain schemes to help
completed their projects before the schemes were declared, or were not able to do
so within the period stipulated by SIDBI
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There is an urgent need to make the latest technology available as the industry is
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Buyback arrangement
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Create awareness on issues like Globalization, WTO, IPR, Patent Laws & GMP,
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Develop managerial skills in areas like TQM, QMS including Time & Knowledge
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management, and
modernization.
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Ensure credit flow for technology up gradation, product quality improvement &
Try out formation of consortia for commercial gains.
The interest subsidy scheme declared by the government is yet to be implemented.
SSI sector of the state used to enjoy price preference of 15% for government
tenders until 2004. Since 2005 onwards, however, this has been reduced to 10%.
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Restoring price preference to 15% will definitely be an incentive to the small scale
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Formation of a Pharma cluster in Kerala: The cluster could have common raw
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material procurement and storage facility, central lab for R&D activities and testing
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75% of the governments purchases to be resaved for the SSI manufacturers of the
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state with 15% price preference. Alternatively, Government may supply the raw
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materials for the products required, to the manufacturers and get the products
manufactured under loan license from them. The government will get the products
at the lowest possible rates and the manufacturers will be benefited by the
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