India's emerging pharmaceutical industry has appeared as the world leader in the fabrication of standard generic

drugs, ever since the Patent Act 1970 permitted India to seriously approach and contribute in the pharmaceutical
market worldwide. India is the preferred nation for pharmaceutical generation, with low charges for research and
development as well as production of drugs. And the pharmaceutical companies in India have made full use of the
favorable environment offered by the country to make it big.

The workforce and technological proficiency of pharmaceutical companies in India ensures the growth of
the industry on a global scale as well as within India. The sector is predicted to value about $3.1 billion
(USD).

Growth of Indian Pharmaceutical market

In the year 2008, Indian pharmaceutical market was assessed at $7,743m which witnessed an augmentation of 4.0%
over 2007. Business observers predict that the Indian pharmaceutical market will escalate at an increasing mode as
compared to the global pharmaceutical market, at a CAGR of 13.2% during the fiscal years 2009-14 to reach an
overall worth of $15,490m in 2014.

India has also appeared as the preferred location for the pharmaceutical companies of the world because of its
towering growth scenario furnished by elderly population, alteration in disease profile, developing patent system and
socio-economic circumstances.

The competition in the Indian pharmaceutical market is cutthroat and the market is divided among the top 10 pharma
companies accounting for 36.1% of the overall R&H sales in the fiscal year 2008.

India began to abide by the World Trade Organization's Trade Related Aspects of Intellectual Property Rights (WTO-
TRIPS) agreement and acknowledged product rights after the revision of the Indian Patent Act in January 2005.
Indian firms are laying out strategies to benefit from the Japanese government proposal to endorse generic drugs to
minimize healthcare charges.

Top ten pharmaceutical companies in India

(along with their 2007 turnover):

 Ranbaxy Laboratories
By sales India's largest pharma firm with the returns touching Rs 4,198.96 crore (Rs 41.989 billion) in 2007
 Dr. Reddy's Laboratories
With a turnover of Rs 4,162.25 crore (Rs 41.622 billion) in 2007, Dr Reddy's lab is second largest drug firm
in India by sales .
 Cipla
Cipla generated an annual revenue of Rs 3,763.72 crore (Rs 37.637 billion) in 2007 making itself the third
largest pharmaceutical firms.
 Sun Pharmaceuticals
Sun Pharma Industries had an overall earnings of Rs 2,463.59 crore (Rs 24.635 billion) in 2007.
 Lupin Labs:
Lupin Labs yielded total profit of Rs 2,215.52 crore (Rs 22.155 billion) in 2007.
 Aurobindo Pharma
India's sixth largest pharma company by sales, Aurobindo posted Rs 2,080.19 crore (Rs 20.801 billion)
annual returns in 2007.
 GlaxoSmithKlineg
With 2007 turnover touching Rs 1,773.41 crore (Rs 17.734 billion, GSK is India's seventh largest pharma
firm.
 Cadila Healthcare
Cadila's earnings was Rs 1,613.00 crore (Rs 16.13 billion) in the fiscal year 2007, establishing itself as
India's eight largest drug company.
  Aventis Pharma
With an annual revenue of Rs 983.80 crore (Rs 9.838 billion) in 2007, Aventis Pharma has made a place for
itself in the top ten pharma companies in India
 Ipca Laboratories
Ipca is India's 10th largest pharma company by sales and in 2007 it had a turnover of Rs 980.44 crore (Rs
9.804 billion)

Major issues concerning the pharmaceutical companies in India

 Failure of the new patent system: Prerequisites associated with Sec 3(d) of the Patent (Amendment) Act
2005 restrict the copyright of an existing drug. Moreover, mandatory licensing permits Indian companies to
keep producing generics of copyright products for overseas selling to underdeveloped nations.
 Lack of proper infrastructure: Issues associated with regular power cuts and lack of suitable transport
infrastructure will decelerate the expansion of the sector.
 Inadequate funds: Restricted funding from FIs, venture capitalists and the government may decelerate the
expansion of biotechnology sector in India.
 Regulatory impediments: Rising of due meticulousness and conformity with product standards leads to high
costs and interruption in the launch of new products.
 Severe competition: Low margins and restricted capital to assist R&D is the result of intense pricing
competition among local producers. This rivalry will further deepen from the joining in of the big drug
companies in the Indian market to control the cost benefit and large reserve sources.