With the Indian pharmaceutical sector doing so well investor interest has naturally picked up. Today Indian pharma franchisees are attracting big international player who are willing to invest their top dollar, hoping to cash in on the Indian boom. Investment has been flowing in for big players as well as smaller pharma franchisees in India.
Large local market: India is a popular destination for goods because of its large market and this extends to pharmaceutical products as well. There is a high demand locally that has been driving the local markets. Experts predict that by 2020 India will be among the top six global markets in terms of size.
Growing global market share: While most people are focused on the massive Indian market, it is its global reach that is now of interest to the international investors. India is soon becoming one of the most important suppliers of medicines in the world. The proof lies in the figures.
- In terms of volume, it is the largest supplier of generic medicines in the world.
- More than 80 per cent of the antiretroviral drugs used for AIDS treatment come from India.
- The UN-backed Medicines Patent Pool has tied up with Indian pharma companies to supply generic anti-AIDS medicines to 112 developing countries.
- According to some estimates the Indian pharma industry is expected to grow by 15%annually in 2015-20, compared to the 5% globally!
Excellent talent pool: For an investor the market figures are not everything. The bigger question is the sustainability of this growth. That is possible only if the figures are backed by expertise and this is where India wins over many other countries. India has a large talent pool in the form of scientists and engineers, who are crucial in setting up laboratories and pharma units.
Growing biotechnology sector: The growth of pharma franchise company in India is backed by an equally rapidly growing biotechnology sector. Biopharma is the largest sub-sector, contributing 62% of the total revenue. Estimates put the growth of the bioinformatics and bio-industry at 30% annually.
Government back-up: A major reason for investing in the India pharma sector is the Central government’s backing to the industry. The government has, through a number of policies, shown its commitment to the industry. With the clearing of 100% FDI, the government is now busy wooing investors. In short, this is the perfect time to invest in the sector.
ROI: The heightened interest in this sector is because of the excellent return on investment that any investor can expect. The Indian pharma industry already has a well established presence with aggressive marketing and a solid back-up in R&D. It also has an established market and a global reputation. This means excellent returns on investment – just what an investor is looking for!
Rigorous control: Unlike countries with sketchy inspection regime, the Indian authorities have strict rules regarding pharma industry output. The certificates that a creditable company carries include ISO, WHO, Good Manufacturing Products certification, Drug Controller General of India approval and FSSAI licensing.