India Generics 181813

MarketLine Industry Profile
Generics in India
July 2023
Reference Code: 0102-0334
Publication Date: July 2023
Primary NAICS: 325412
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Generics in India
Industry Profiles
1. Executive Summary
1.1. Market value

The Indian generics market grew by 9% in 2022 to reach a value of $17,617.5 million.
1.2. Market value forecast

In 2027, the Indian generics market is forecast to have a value of $26,308.6 million, an increase of 49.3%
since 2022.
1.3. Market volume

The Indian generics market grew by 0.2% in 2022 to reach a volume of 97.4 %.
1.4. Market volume forecast

In 2027, the Indian generics market is forecast to have a volume of 98.1 %, an increase of 0.7% since 2022.
1.5. Geography segmentation

India accounts for 10.8% of the Asia-Pacific generics market value.
1.6. Market rivalry

Rivalry in the Indian generics market is strong. Without very much product differentiation, or the brand
loyalty enjoyed by some branded drugs, the main players engage in price wars. High fixed costs and exit
costs add to this rivalry and, as a result, players tend to be large and have a good deal of expertise in the
market.
1.7. Competitive landscape

The Indian generics market has been experiencing rapid growth for a long time now. Value growth has
continued to be strong even though generics’ share of pharmaceuticals is high. This is largely due to rising
wages and a burgeoning middle class that is paying greater attention to healthcare. The market is
dominated by domestic players, which have experienced strong growth in recent years due to increasing
demand for generics. The Indian generics market consists of four main leaders: Sun Pharma, Lupin,
Aurobindo Pharma, and Cipla.

Generics in India
Industry Profiles

Generics in India
Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................................2
1.2. Market value forecast ..................................................................................................................................2
1.3. Market volume.............................................................................................................................................2
1.4. Market volume forecast...............................................................................................................................2
1.5. Geography segmentation.............................................................................................................................2
1.6. Market rivalry...............................................................................................................................................2
1.7. Competitive landscape.................................................................................................................................2
2. Market Overview 8
2.1. Market definition .........................................................................................................................................8
2.2. Market analysis ............................................................................................................................................8
3. Market Data 10
3.1. Market value ..............................................................................................................................................10
3.2. Market volume...........................................................................................................................................11
4. Market Segmentation 12
4.1. Geography segmentation...........................................................................................................................12
5. Market Outlook 13
5.1. Market value forecast ................................................................................................................................13
5.2. Market volume forecast.............................................................................................................................14
6. Five Forces Analysis 15
6.1. Summary ....................................................................................................................................................15
6.2. Buyer power...............................................................................................................................................16
6.3. Supplier power ...........................................................................................................................................17
6.4. New entrants .............................................................................................................................................19
6.5. Threat of substitutes ..................................................................................................................................20
6.6. Degree of rivalry.........................................................................................................................................21

Generics in India
Industry Profiles
7. Competitive Landscape 23
7.1. Who are the leading players? ....................................................................................................................23
7.2. What are the strengths of the leading players?.........................................................................................23
7.3. Have there been any recent developments in the market? ......................................................................24
8. Company Profiles 26
8.1. Sun Pharmaceutical Industries Ltd.............................................................................................................26
8.2. Lupin Ltd.....................................................................................................................................................29
8.3. Aurobindo Pharma Ltd ...............................................................................................................................33
8.4. Cipla Limited...............................................................................................................................................36
9. Macroeconomic Indicators 40
9.1. Country data ..............................................................................................................................................40
9.2. Methodology..............................................................................................................................................42
9.3. Industry associations..................................................................................................................................43
9.4. Related MarketLine research .....................................................................................................................43

Generics in India
Industry Profiles
LIST OF TABLES
Table 1: India generics market value: $ million, 2017–22 10
Table 2: India generics market volume: %, 2017–22 11
Table 3: India generics market geography segmentation: $ million, 2022 12
Table 4: India generics market value forecast: $ million, 2022–27 13
Table 5: India generics market volume forecast: %, 2022–27 14
Table 6: Sun Pharmaceutical Industries Ltd: key facts 26
Table 7: Sun Pharmaceutical Industries Ltd: Annual Financial Ratios 27
Table 8: Sun Pharmaceutical Industries Ltd: Key Employees 28
Table 9: Lupin Ltd: key facts 29
Table 10: Lupin Ltd: Annual Financial Ratios 31
Table 11: Lupin Ltd: Key Employees 32
Table 12: Aurobindo Pharma Ltd: key facts 33
Table 13: Aurobindo Pharma Ltd: Annual Financial Ratios 34
Table 14: Aurobindo Pharma Ltd: Key Employees 35
Table 15: Cipla Limited: key facts 36
Table 16: Cipla Limited: Annual Financial Ratios 38
Table 17: Cipla Limited: Key Employees 39
Table 18: India size of population (million), 2018–22 40
Table 19: India gdp (constant 2005 prices, $ billion), 2018–22 40
Table 20: India gdp (current prices, $ billion), 2018–22 40
Table 21: India inflation, 2018–22 40
Table 22: India consumer price index (absolute), 2018–22 40
Table 23: India exchange rate, 2018–22 41

Generics in India
Industry Profiles
LIST OF FIGURES
Figure 1: India generics market value: $ million, 2017–22 10
Figure 2: India generics market volume: %, 2017–22 11
Figure 3: India generics market geography segmentation: % share, by value, 2022 12
Figure 4: India generics market value forecast: $ million, 2022–27 13
Figure 5: India generics market volume forecast: %, 2022–27 14
Figure 6: Forces driving competition in the generics market in India, 2022 15
Figure 7: Drivers of buyer power in the generics market in India, 2022 16
Figure 8: Drivers of supplier power in the generics market in India, 2022 17
Figure 9: Factors influencing the likelihood of new entrants in the generics market in India, 2022 19
Figure 10: Factors influencing the threat of substitutes in the generics market in India, 2022 20
Figure 11: Drivers of degree of rivalry in the generics market in India, 2022 21

Generics in India
Industry Profiles
2. Market Overview
2.1. Market definition

For the purposes of this profile, a generic drug is defined as a copy of an ethical (prescription) drug formerly
protected by patents that have now expired. Both unbranded generics and branded generics are included in our
market scope. However, off-patent drugs that continue to be offered by the original manufacturer under the
original name, and which form part of the 'generic-eligible' market, are not included. The market value is
evaluated at ex-factory prices.
Market volume is quantified here as the percentage of the total ethical pharmaceutical market volume in a
country or region which is accounted for by generic drugs. It is therefore a generics penetration rate measure, not
an absolute measure of market volume.
Regional volumes are calculated as weighted averages of countries that comprise the region where volume data
exists.
All market data and forecasts are represented in nominal terms (i.e., without adjustment for inflation) and all
currency conversions used in the creation of this report have been calculated using constant 2022 annual average
exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The Indian generics market grew strongly during the historic period except for 2020 when the market recorded
sluggish growth. In 2021 and 2022, the market recovered strongly and is expected to grow at a similar pace over
the forecast period.
According to in-house research, in 2022, India accounting for a share of 10.8%, was the second-largest generics
drug market in Asia-Pacific. The country is increasingly gaining momentum as a key outsourcing destination for
drug manufacturing due to lower production costs. Factors such as accelerating healthcare costs, rising expiration
of patents for branded medicines, growing first generic drug approvals, increasing cardiovascular and infectious
diseases, and a growing number of generic manufacturers are driving the generics market. Non-communicable
illnesses are responsible for 44% of lost disability-adjusted life years and 53% of all fatalities in India. According to
the International Diabetes Federation, 77 million people in the country currently have diabetes, which is projected
to reach 134 million by 2045. This growth in chronic diseases is supporting the market growth.
The Indian generics market had total revenues of $17.6 billion in 2022, representing a compound annual growth
rate (CAGR) of 8.1% between 2017 and 2022. In comparison, the South Korean and Chinese markets grew with
CAGRs of 4.4% and 12.6% respectively, over the same period, to reach respective values of $5.2 billion and $111.7
billion in 2022.

Generics in India
Industry Profiles
In 2022, the Indian generics market witnessed an annual growth of 9%. The country has in place “Pradhan Mantri
Bhartiya Janaushadhi Pariyojana (PMBJP) responsible for the distribution of generic medicines at affordable prices
through outlets known as “Janaushadhi Kendras”. As of March 2023, the country has 9,303 Janaushadi Kendras.
The expanding distribution network for generics is supporting the market growth.
Market consumption volume increased with a CAGR of 0.4% between 2017 and 2022, to reach a total of 97.4% in
2022. The market's volume is expected to rise to 98.1% by the end of 2027, representing a CAGR of 0.1% over
2022–27.
The generic medication market is expanding due to its lower cost than patented original medications, giving them
an edge in volume-based procurement settings where there is intense price rivalry. Moreover, the country has a
large low-income population who cannot afford expensive medications. As a result, the Pharma & Medical Bureau
of India (PMBI) creates awareness through education and advertising about the quality of generic medications to
dispel the myth that quality is exclusively associated with high prices, hence supporting market growth.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 8.4% over 2022–27, which is
expected to drive the market to a value of $26.3 billion by the end of 2027. Comparatively, the South Korean and
Chinese markets will grow with CAGRs of 4.8% and 8.9%, respectively, over the same period to reach respective
values of $6.6 billion and $171.1 billion in 2027.
The government of the country is also taking initiatives to promote the consumption of generic medicine across
the country. In May 2023, the Indian health ministry issued a notice asking doctors in the Central Government
Hospitals/CGHS Wellness Centers/Polyclinics to prescribe generic medicines only. Additionally, the National
Medical Commission Act, 2019, gives the State Medical Council and the Commission's Ethics and Medical
Registration Board (EMRB) the authority to take action against a doctor disobeying the regulations. Also, continued
investment in awareness campaigns for generic medicines and similar initiatives will continue to elevate demand.

Generics in India
Industry Profiles
3. Market Data
3.1. Market value

The Indian generics market grew by 9% in 2022 to reach a value of $17,617.5 million.
The compound annual growth rate of the market in the period 2017–22 was 8.1%.
Table 1: India generics market value: $ million, 2017–22
Year $ million Rs. million € million % Growth

2017 11,913.5 936,375.0 11,324.6
2018 13,416.8 1,054,535.7 12,753.7 12.6%
2019 14,731.7 1,157,880.2 14,003.5 9.8%
2020 14,836.0 1,166,079.8 14,102.7 0.7%
2021 16,168.3 1,270,795.8 15,369.1 9.0%
2022 17,617.5 1,384,697.9 16,746.7 9.0%
CAGR: 2017–22 8.1%

Source: MARKETLINE MARKETLINE
Figure 1: India generics market value: $ million, 2017–22

Generics in India
Industry Profiles
3.2. Market volume

The Indian generics market grew by 0.2% in 2022 to reach a volume of 97.4 %.
The compound annual growth rate of the market in the period 2017-22 was 0.4%.
Table 2: India generics market volume: %, 2017–22
Year % % Growth
2017 95.5
2018 96.5 1.1%
2019 96.6 0.1%
2020 97.0 0.4%
2021 97.2 0.2%
2022 97.4 0.2%
CAGR: 2017–22 0.4%

Figure 2: India generics market volume: %, 2017–22

Generics in India
Industry Profiles
4. Market Segmentation
4.1. Geography segmentation

India accounts for 10.8% of the Asia-Pacific generics market value.
China accounts for a further 68.8% of the Asia-Pacific market.
Table 3: India generics market geography segmentation: $ million, 2022
Geography 2022 %
China 111,666.9 68.8
India 17,617.5 10.8
Japan 14,960.2 9.2
South Korea 5,172.0 3.2
Taiwan 2,354.1 1.4
Rest of Asia-Pacific 10,611.6 6.5
Total 162,382.3 99.9%

Figure 3: India generics market geography segmentation: % share, by value, 2022

Generics in India
Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2027, the Indian generics market is forecast to have a value of $26,308.6 million, an increase of 49.3% since
2022.
The compound annual growth rate of the market in the period 2022–27 is predicted to be 8.4%.
Table 4: India generics market value forecast: $ million, 2022–27
Year $ million Rs. million € million % Growth

2022 17,617.5 1,384,697.9 16,746.7 9.0%
2023 19,001.3 1,493,464.1 18,062.1 7.9%
2024 20,539.1 1,614,331.9 19,523.9 8.1%
2025 22,198.2 1,744,734.8 21,101.0 8.1%
2026 24,170.5 1,899,750.6 22,975.8 8.9%
2027 26,308.6 2,067,802.4 25,008.2 8.8%
CAGR: 2022–27 8.4%

Figure 4: India generics market value forecast: $ million, 2022–27

Generics in India
Industry Profiles
5.2. Market volume forecast

In 2027, the Indian generics market is forecast to have a volume of 98.1 %, an increase of 0.7% since 2022.
The compound annual growth rate of the market in the period 2022–27 is predicted to be 0.1%.
Table 5: India generics market volume forecast: %, 2022–27
Year % % Growth
2022 97.4 0.2%
2023 97.7 0.2%
2024 97.8 0.1%
2025 97.9 0.1%
2026 98.0 0.1%
2027 98.1 0.1%
CAGR: 2022–27 0.1%

Figure 5: India generics market volume forecast: %, 2022–27

Generics in India
Industry Profiles
6. Five Forces Analysis

The generics market will be analyzed taking drug manufacturers as players. The key buyers will be taken as health
care facilities, insurers, and government agencies, and manufacturers of active pharmaceutical ingredients and
packaging companies as the key suppliers.
6.1. Summary
Figure 6: Forces driving competition in the generics market in India, 2022
Rivalry in the Indian generics market is strong. Without very much product differentiation, or the brand loyalty enjoyed
by some branded drugs, the main players engage in price wars. High fixed costs and exit costs add to this rivalry and, as
a result, players tend to be large and have a good deal of expertise in the market.
Buyers can easily switch between manufacturers of generics and decisions are very likely to be price based.
Governments can have a heavy influence on how generics are sold and how they are prioritized in the healthcare
system.
Suppliers of APIs (active pharmaceutical ingredients) are largely similar companies to the players, so integration is very
likely. However, packaging companies tend to be independent and have various revenue streams, so they are less likely
to rely on the generics market.
Although the products have to be biosimilar to the original drug to gain status as a generic, the entry barriers are lower
than for a patented new drug, which means that new entrants are likely. Patented drugs producers already have the
capabilities to enter the market and there tends to be much M&A activity in the market.
The original drug will always be a substitute for the generic for more brand-oriented consumers. In addition, non-
medicinal therapy and alternative medicine are other options that may be considered.

Generics in India
Industry Profiles
6.2. Buyer power
Figure 7: Drivers of buyer power in the generics market in India, 2022
Buyers can range from small companies to large corporate entities, such as healthcare facilities and large retailers.
These different buyers experience varying levels of buyer power. India’s national health insurance, Rashtriya Swasthya
Bima Yojana (RSBY), and large private companies such as Fortis Healthcare, have strong financial muscle as the volume
of orders placed is likely to be high and any loss of business would have a large financial impact on players in the market
which increases buyer power. However, the large number of available buyers decreases the buyer power because
players do not have to rely on a finite number of buyers, even if there are some which are much more valuable than
others.
Except for OTC (over-the-counter) and similar drugs, prescriptions are generally required to obtain pharmaceutical
products. The marketing of prescription drugs by their manufacturers is therefore largely directed at medical
practitioners, with whom they wield significant influence. Marketing directly to consumers is illegal in most countries,
including India.
There is little brand awareness associated with generics and the products are, by definition, very similar to the original
previously patented drug, so switching costs are low and buyers can usually choose the cheapest option. Paracetamol
(Acetaminophen), for example, is manufactured by hundreds of companies but the product itself must stay largely the
same apart from its packaging and appearance, which companies are free to change.
Switching costs are negligible for individuals because they are likely to only be purchasing a small amount, so can
choose freely from the available choices, but contracts can increase switching costs for buyers that buy in bulk.
Medication for life-threatening diseases is indispensable to patients and healthcare facilities, but patients may choose
not to pay for treatment or try alternative therapies if symptoms are milder. They may also choose a non-generic if they
are more brand focused. Buyers are unlikely to backward integrate into generics manufacturing which reduces buyer
power. However, players are fully independent of their buyers as their business set-ups are very different and cannot
integrate forward, which increases buyer power.
Overall, buyer power in the generics market is strong.

Generics in India
Industry Profiles
6.3. Supplier power
Figure 8: Drivers of supplier power in the generics market in India, 2022
The main suppliers to this market are manufacturers of active pharmaceutical ingredients (APIs) and packaging
suppliers. Packaging suppliers are largely independent of players and have an array of different customers across many
industries, so they do not need to rely on the generics market for revenue which increases their power. However,
packaging suppliers have comparatively lower power as generic manufacturers can use different types of packaging
because appearance is not very important to end users and the quality of the packaging is much less important than the
actual ingredients in the drug. API manufacturers, however, have a large reliance on pharmaceutical companies for
their revenue. The country relies heavily on the import of APIs to manufacture pharmaceutical goods and meet rising
demand. In response, the Indian government announced a Production Linked Incentive Scheme (PLI) for
pharmaceutical drugs in March 2021. The scheme focuses on the promotion of domestic manufacturing of key starting
materials (KSMs), drug intermediates (DIs), and APIs. Under the scheme, the government will invest in new machinery
and equipment, research facilities, and the building of new production plants. A greater number of API suppliers could
weaken supplier power as pharmaceutical companies are not reliant on a limited number of suppliers for key raw
manufacturing materials.
Players also have a huge reliance on the suppliers to provide high-quality APIs, without any substitute inputs to fall back
on. As a result of this close dependence, large generic companies are likely to backward integrate into producing APIs
themselves, reducing supplier power. However, suppliers are also very likely to forward integrate into generics if they
have the chemical synthesis know-how.
Pharmaceutical companies enter into contractual agreements with suppliers to secure enough supplies to maintain
their large orders, and they may therefore incur switching costs if they decide to change suppliers. This gives the
suppliers increased power over market players. Alternatively, pharmaceutical companies employ sourcing managers to
minimize costs when purchasing APIs.
Market players tend to purchase their raw materials from numerous suppliers, reducing their reliance on any particular
company. In general, laboratory equipment and chemicals show little differentiation between suppliers, with players
utilizing a high degree of choice to obtain the best quality and cost relationship, reducing supplier power. However,
there are instances where specialized facilities or raw materials are required, such as the sterile processing of biological
materials. In such cases, supplier power is much stronger.
It is unlikely that suppliers would forward-integrate into the pharmaceuticals market; however, their capabilities in
chemical synthesis make them ideal candidates for forward integration into the manufacture of generic drugs. Several

Generics in India
Industry Profiles
players can integrate backward into chemical manufacturing, providing them with a degree of self-sufficiency, and
reducing supplier power.
It is common for pharmaceutical companies to outsource drug testing and clinical trials to third-party test service
providers. Given the importance of these trials for regulatory approvals, these service providers are also important
suppliers. COVID-19 has highlighted issues with supply chains, with most APIs sourced from countries such as India and
China. Firms often use one plant for supply, an issue that has been exposed due to regional lockdowns causing
significant disruption. Diversifying the supply chain, so as not to be left stranded in the event of a crisis, is likely to be a
change in the coming years.
Overall, supplier power in the generics market is strong.

Generics in India
Industry Profiles
6.4. New entrants
Figure 9: Factors influencing the likelihood of new entrants in the generics market in India, 2022
Entry barriers are typically lower in this market than those in the wider pharmaceutical industry. However, the existing
players in the generics market such as SunPharma and Lupin, as well as domestic company Aurobindo benefit from
scale economies, and the new players are expected to compete with these incumbents, boosting entry barriers. There
are also high costs incurred when setting up production facilities and employing highly trained staff. Also, barriers to
entry for a generics company will depend on factors such as the expiry of patents on those drugs it intends to replicate
and the likelihood that the patent holder will protect its market position by offering a similar drug under a new or
extended patent.
The generics market is highly regulated by the government to ensure the quality and safety of the drug. In India, Central
Drugs Standard Control Organization (CDSCO) authorizes companies to produce generic medicines. Generic
manufacturers must adhere to stringent manufacturing practices and quality control standards and ensure that the
active substance of generic medicine is similar to the original product. These regulations restrict new entrants in the
industry. Recently, the US FDA tightened stringent regulatory rules for Indian pharmaceutical companies producing
generic drugs through an increase in inspections and Open Access Initiatives (OAI) at Indian sites.
The easy access to distribution channels encourages the entry of new players in the market. The manufacturers can
either offer their products through online pharma retails or through offline stores. The convenience, flexibility, and
comfort offered by online channels are encouraging its popularity. For instance, Medkart, PharmEasy, and Netmeds are
some of the popular online pharmacies in the Indian market.
Due to the uncertainty brought about by the COVID-19 pandemic in 2020, any potential new entrants are likely to have
been deterred that year. The generic and pharmaceutical markets were hit with supply chain disruptions in the
production of APIs at the early stages of the outbreak, which made it more challenging for any new players to enter the
market and begin producing generic products. However, as supply chains recovered and demand stabilized in 2021 and
2022, the market is expected to become more attractive to new entrants.
Overall, the likelihood of new entrants can be assessed as moderate.

Generics in India
Industry Profiles
6.5. Threat of substitutes
Figure 10: Factors influencing the threat of substitutes in the generics market in India, 2022
Patented drugs are the main substitutes to the generics market. Typically, a generic is only produced after a patent has
expired, which can be up to 20 years after original production. This gives producers of patented drugs time to develop a
new therapeutic agent which might be more effective and, therefore, more attractive to clinicians and consumers than
a generic product. Patented drugs are almost always more expensive than generic drugs because the original producers
need to fund research into the next generation of medications. However, generics must be approved as an equivalent
to the original drug, so there is no clinical benefit to choosing a patented drug over a generic.
Where mental illness, such as anxiety or depression, is concerned, cognitive behavioral therapy is a substitute. Recent
years have seen something of a backlash against a perceived overuse of pharmaceuticals to treat patients suffering
from such illnesses and cognitive behavioral therapy is therefore a significant substitute.
Over recent years, the use of holistic therapies by the general public has grown. Holistic therapies are inexpensive, but
lack rigorous clinical testing, making their alleged therapeutic benefits questionable. Ayurvedic medicine is one of the
oldest systems of medicine in the world and has been practiced in India for thousands of years. It combines diet,
exercise, and herbal remedies and its research is supported by the Indian government. Most Indians will use some sort
of Ayurvedic therapy exclusively or alongside generic medication.
Overall, the threat of substitutes to this market is moderate.

Generics in India
Industry Profiles
6.6. Degree of rivalry
Figure 11: Drivers of degree of rivalry in the generics market in India, 2022
The Indian generics market consists of numerous players such as Sun Pharma, Lupin, Aurobindo Pharma, and Cipla. The
industry is highly competitive due to the large size of players. Leading incumbents within this market are typically
multinational companies that have a large geographical presence which eases rivalry. India, however, is dominated by
large local players, which increases rivalry. Lupin has acquired pharmaceutical companies in Russia, South Africa, Brazil,
Germany, and the US, which means it doesn't have to rely on India's generics market alone.
The capital-intensive nature of the industry increases the competitive rivalry between the players. The industry also
involves high exit barriers due to large capital investment, compelling players to operate even at lower margins, and
increasing the rivalry. The players focus on stringent quality and safety management principles to ensure the delivery of
quality products to their clientele to retain customers. Compliance with quality standards builds the company’s brand
image and boosts the customer’s confidence in the player.
The ability of generics companies to be profitable while selling the same molecule at a much lower price than the
originator, following patent expiration, shows that establishing high-quality manufacturing processes is not prohibitively
costly. A secondary effect of this is that it is relatively easy for companies to expand output, for example, through
licensing agreements with other companies, without the need to scale up their production facilities. Given the
increasing linkages between regulatory authorities and the greater likelihood of a drug being approved in multiple
locations, this tends to boost rivalry.
It is moderately easy to exit the generics market. The lack of patents means that there is little IP to protect, unlike in the
wider pharmaceutical industry. Many of the R&D and production facilities and equipment will have uses outside
pharmaceutical research or manufacture.
Some of the largest pharmaceutical companies have their own generics branch, such as Novartis, which owns Sandoz.
These types of companies will have the expertise and reputation of parent companies, which could give them a
competitive edge over those who work in generics alone. There is also the benefit of protection from a declining
generics market. As products are largely undifferentiated, once companies are established, it is easy to expand into
other kinds of generics, and the rivalry increases.
There is little brand loyalty in this market and switching products is unlikely to incur a cost for buyers unless a contract
is involved, which means that companies must embark upon competitive pricing strategies to ensure a strong customer
base.

Generics in India
Industry Profiles
The market witnessed strong growth during the historic period due to the expanding outsourcing of manufacturing to
India due to lower production costs, which eased rivalry. Moreover, the acceleration of market growth over the
forecast period is expected to further ease rivalry among the players.
Overall, the degree of rivalry is assessed as strong.

Generics in India
Industry Profiles
7. Competitive Landscape
The Indian generics market has been experiencing rapid growth for a long time now. Value growth has continued
to be strong even though generics’ share of pharmaceuticals is high. This is largely due to rising wages and a
burgeoning middle class that is paying greater attention to healthcare. The market is dominated by domestic
players, which have experienced strong growth in recent years due to increasing demand for generics. The Indian
generics market consists of four main leaders: Sun Pharma, Lupin, Aurobindo Pharma, and Cipla.
7.1. Who are the leading players?

Sun Pharma is a specialty pharmaceutical company headquartered in Mumbai, Maharashtra, India. The company
offers a wide range of pharmaceutical formulations such as branded generics and generic pharmaceuticals. The
company’s portfolio includes products for the treatment of psychiatric, neurological, nephrological,
gastroenterological, orthopedic, and ophthalmologic diseases and disorders, and heart diseases. The company
carries out product development, process chemistry, and manufacture of complex formulations, active
pharmaceutical ingredients (APIs), and over-the-counter products. The company has manufacturing facilities in
North America, Latin America, Europe, the Middle East and Africa, and Asia-Pacific. It also operates 43
manufacturing facilities for formulations and APIs across several countries, including the US, Japan, Russia, and
Canada, among others. The company reported revenues of INR438.9 billion ($5.9 billion) for the fiscal year ending
March 2023 (FY2023).
Lupin is one of the leading generic pharmaceutical companies in India. It develops and manufactures generic and
branded formulations, biotechnology products, and active pharmaceutical ingredients (APIs). It has expertise in the
areas of cardiovascular, asthma, diabetic management, pediatrics, the central nervous system, gastrointestinal,
anti-infectives, nonsteroidal anti-inflammatory drugs (NSAIDs), anti-TB, and cephalosporins. The company, along
with its subsidiaries, operates manufacturing facilities in India, the US, Mexico, and Brazil. Lupin is headquartered
in Mumbai, Maharashtra, India. The company reported revenues of INR166.4 billion ($2.1 billion) for the fiscal year
that ended in March 2023, an increase of 1.4% over FY2022.
Aurobindo, headquartered in Hyderabad, Telangana, India, manufactures and markets generic pharmaceuticals
and active pharmaceutical ingredients (APIs). Its product portfolio is spread across major therapeutic and product
categories including antibiotics, anti-retroviral, systemic gastroenterological, central nervous system,
cardiovascular, anti-allergies, anti-diabetics, and other therapeutic areas. The company also produces novel
proprietary biocatalysts, vitamins, minerals, dietary supplements, sports nutrition, functional foods, weight loss
products, and fermentation-based semi-synthetic products. Aurobindo operates manufacturing facilities in India,
Brazil, Portugal, and the US, and R&D, facilities in India and the US. The company reported revenues of INR248.5
billion ($3.4 billion) for the fiscal year ending March 2023 (FY2023).
Cipla Limited (Cipla or 'the company') is a manufacturer of prescription drugs, veterinary and active
pharmaceutical ingredient products. The company provides products for various therapeutic categories including
dermatology, critical care, cardiovascular, infectious diseases, children's health, and cosmetology, HIV/AIDS,
diabetes, neurosciences, hepatitis, malaria, oncology, ophthalmology, respiratory, osteoporosis, and urology. Cipla
is engaged in biosimilar and consumer healthcare. Cipla operates manufacturing facilities in multiple locations
across the world. Cipla offers its products in South Africa, India, and North America, and other markets. The
company is headquartered in Mumbai, Maharashtra, India. The company reported revenues of INR217.6 billion
($2.9 billion) for the fiscal year ended March 2022 (FY2022), an increase of 13.6% over FY2021.
7.2. What are the strengths of the leading players?

Sun Pharma Sun Pharma is one of the leading pharmaceutical companies in India. The company has more than
11,149 sales force that covers over 500,000 doctors with 11 different classes. The company operates 43
manufacturing facilities worldwide with 24 manufacturing plants in India for formulations and APIs. Sun Pharma

Generics in India
Industry Profiles
sells its products in more than 100 countries in emerging markets, including Latin America, Africa, Asia, and
Eastern & Central Europe. It has a strong R&D division that focuses on the development of a strong product
pipeline for sustainable growth. In FY2022, the company incurred R&D expenses of INR22.1 billion ($281.5 million),
which as a percentage of revenue, stood at 5.8%. The company's research expertise spans the development of
generics, active pharmaceutical ingredients (API), and novel drug delivery systems (NDDS). As of March 31, 2022,
the company had 512 approved Abbreviated New Drug Applications (ANDAs) and 605 filed ANDAs.
Lupin is an innovation-led transactional pharmaceutical company producing a wide range of quality, affordable
generic and branded formulations, and APIs. The company is one of the largest and fastest-growing generic
pharmaceuticals in India. As on March 31, 2023, the Company has 28 subsidiaries and a joint venture. Lupin
markets its drugs and products in over 100 countries worldwide. The company has a strong portfolio of products
including 463 ANDAs and four NDAs which have been approved by the US FDA. It has 17 ANDAs approved and 28
filed and three NDAs approved and three filed. A strong portfolio of generic products enables Lupin to serve
diversified end markets that hold attractive long-term growth characteristics. Some of its leading products include
Rifapentine, Rifabutin, Rifampicin, Pyrazinamide, and Ethambutol, as well as products in cephalosporins including
cephalexin and their intermediates.
Aurobindo is a vertically integrated pharmaceutical company that delivers novel solutions. It provides drug
development and substantial manufacturing services from discovery to development to commercialization. This
includes complete R&D to identify and advance substances for further development and improve manufacturing
facilities, sales, and marketing operations. The company’s operations from conception to commercialization
provide several advantages, such as reduced manufacturing and delivery times, lower costs, direct sourcing of raw
materials, and quality control for each of its divisions. Approximately 70% of the company’s API requirement is
being met in-house. The company is also focused on vertically integrating the manufacturing plants for most
generic formulations, to ensure timely material availability and operations, and to decrease the dependency on
import of APIs and intermediaries. The company has 14 manufacturing formulations facilities, 10 API plants, and
packaging facilities worldwide.
Cipla has a strong foothold in the Indian market and has a wide product portfolio. It offers over 1,500 and above
products across 86 countries in 65 therapeutic categories and over 50 dosage forms. The company has strong R&D
capabilities. As of March 2022, it had five R&D units. Additionally, it had 269 cumulative ANDAs/NDAs and 278
awarded patents. In addition to having specialized cancer and polypeptide development labs, Cipla managed five
research sites for the development of API processes in India. The company spent INR11.2 billion ($142.8 million)
on R&D in FY2022, which amounted to 5.2% of total revenue.
7.3. Have there been any recent developments in the market?

Business expansion has become one of the most important requisites in the global pharmaceutical and generics
markets. With the presence of many established and new market players, the market has become highly
competitive. Increasing demand for newer and more efficient drugs and formulations has amplified this
competition. To expand their own business and eliminate competitors, many pharmaceutical companies prefer to
enter into various agreements, such as M&As, new products launched, or asset transactions.
Cipla India announced its plans to boost its generic business by strengthening its portfolio breadth and connecting
with channels. The company announced its plans for over 60 launches in the anti-diabetic and injectables
categories in FY2023.
In April 2022, Lupin, a pharmaceutical company engaged in the development of generic formulations, acquired a
portfolio of brands from Anglo-French Drugs & Industries & Associates (AFDIL) for INR3.3 billion ($41.4 million).
The portfolio of products that will be obtained comes under Lupin's business division and will allow the inclusion of
reputable brands with strong recognition among medical experts, particularly in the field of minerals, vitamins, and
supplements. The addition of a rapidly expanding portfolio of vitamins, minerals, supplements, and neurological
products will boost Lupin's India Formulation business.
In November 2021, Aurobindo Pharma completed the acquisition of MViyeS Pharma Ventures (MViyeS) for a cash
consideration of INR2.7 billion ($37.4 million). Prior to the transaction, MViyeS held a 32.18% shareholding in Eugia
Pharma Specialities, a joint venture company, in which Aurobindo Pharma held the remaining balance of 67.82%.

Generics in India
Industry Profiles
Eugia Pharma Specialities is a company engaged in developing, manufacturing, and marketing hormonal and
oncology generic formulations. Through this acquisition, both Eugia Pharma Specialities and MViyeS Pharma
Ventures have become 100% subsidiaries of Aurobindo, which has helped the latter widen its product portfolio.
In June 2021, Dr. Reddy’s completed the acquisition of select divisions of generics businesses in India and a few
other international territories (Nepal, Sri Lanka, Bhutan, and the Maldives) from Wockhardt, a pharmaceutical and
biotechnology company. The business comprises a portfolio of 62 brands in multiple therapy areas, such as
respiratory, neurology, VMS, dermatology, gastroenterology, pain, and vaccines, which have transferred to Dr.
Reddy’s, along with the related sales and marketing teams. This also includes the manufacturing plant located in
Baddi, Himachal Pradesh, with all plant employees. The acquisition is in line with Dr. Reddy’s strategic focus on
India and has paved the way for accelerated growth and a better position in the domestic market.

Generics in India
Industry Profiles
8. Company Profiles
8.1. Sun Pharmaceutical Industries Ltd
8.1.1. Company Overview
Sun Pharmaceutical Industries Ltd (Sun Pharma) is a specialty pharmaceutical company that offers a wide range
of pharmaceutical formulations such as branded generics and generic pharmaceuticals. The company’s
portfolio includes products for the treatment of psychiatric, neurological, nephrological, gastroenterological,
orthopedic and ophthalmologic diseases and disorders, and heart diseases. The company carries out product
development, process chemistry, and manufacture of complex formulations, active pharmaceutical ingredients
(APIs) and over-the-counter products. It offers drugs in various dosage forms such as tablets, capsules,
injectables, inhalers, ointments, creams, and liquids. The company has manufacturing facilities in North
America, Latin America, EMEA and Asia Pacific. Sun Pharma is headquartered in Mumbai, Maharashtra, India.
The company reported revenues of (Rupee) INR438,856.8 million for the fiscal year ended March 2023
(FY2023), an increase of 13.5% over FY2022. In FY2023, the company’s operating margin was 20.7%, compared
to an operating margin of 8.4% in FY2022. In FY2023, the company recorded a net margin of 19.3%, compared
to a net margin of 8.5% in FY2022.
8.1.2. Key Facts
Table 6: Sun Pharmaceutical Industries Ltd: key facts
Head office: Sun House Cts No. 201 B/1, Western Exp, , Mumbai, Maharashtra, India
Telephone: 912243244324
Fax: 9123244343
Number of Employees: 38000
Website: sunpharma.com
Financial year-end: March
Ticker: SUNPHARMA
Stock exchange: National Stock Exchange of India
Source: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Sun Pharmaceutical Industries Ltd (Sun Pharma) manufactures and supplies more than 400 generic (branded and
non-branded) pharmaceuticals to treat conditions such as diabetes, central nervous system disorders, central
vascular system disorders, and respiratory and infectious diseases. The company markets these drugs in various
dosage forms such as tablets/capsules, semi-solids, liquids and suppositories. It has a portfolio of more than 2,000
marketed products. It manufactures more than 370 APIs, which include a number of APIs with regulated market
approval such as US and European drug master files (DMFs).
Sun Pharma classifies its business into three categories namely, Formulations, API, and Others. The company’s
Consumer Healthcare (CHC) business division develops and markets over-the-counter (OTC) products in India.
It operates 43 manufacturing facilities for formulations and APIs. Formulations units are located as 15 in India,
three in the US, two in Japan and one each in Russia, Canada, Hungary, Bangladesh, Israel, Romania, South Africa,
Nigeria and Malaysia while 14 API facilities spread across various countries. It operates in more than 100 countries
in emerging markets, including across Latin America, Africa, Asia and Eastern & Central Europe.

Generics in India
Industry Profiles
Table 7: Sun Pharmaceutical Industries Ltd: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 9.73 12.98 2.01 15.39
Operating Income Growth % 9.00 29.90 -50.85 38.63
EBITDA Growth % 11.43 25.77 -35.20 21.95
Net Income Growth % 27.19 41.25 -22.87 12.70
EPS Growth % 21.57 5.98 61.43 4.98
Working Capital Growth % 16.63 16.16 -10.35 23.50
Equity Ratios
EPS (Earnings per Share) INR 12.84 15.61 16.54 26.71 28.03
Dividend per Share INR 2.00 2.75 4.00 7.50 10.00
Dividend Cover Absolute 6.42 5.68 4.14 3.56 2.80
Book Value per Share INR 159.69 172.59 188.65 193.65 200.10
Profitability Ratios
Gross Margin % 66.40 68.21 68.11 70.49 69.71
Operating Margin % 12.77 12.69 14.59 7.03 8.44
Net Profit Margin % 7.91 9.17 11.47 8.67 8.47
Profit Markup % 197.64 214.61 213.60 238.86 230.16
PBT Margin (Profit Before Tax) % 13.13 13.11 15.26 8.36 11.59
Return on Equity % 5.47 6.44 8.32 6.25 6.82
Return on Capital Employed % 7.58 7.79 9.12 4.57 6.20
Return on Assets % 6.50 4.13 5.66 4.27 4.76
Return on Working Capital % 28.74 26.86 30.04 16.47 18.48
Operating Costs (% of Sales) % 87.23 87.31 85.41 92.97 91.56
Administration Costs (% of Sales) % 42.00 42.76 44.44 42.82 41.25
Liquidity Ratios
Current Ratio Absolute 1.59 1.79 2.02 1.89 2.03
Quick Ratio Absolute 1.25 1.34 1.51 1.33 1.51
Cash Ratio Absolute 0.37 0.21 0.17 0.40 0.29
Leverage Ratios
Debt to Equity Ratio Absolute 0.27 0.25 0.18 0.08 0.03
Net Debt to Equity Absolute -0.09 -0.02 -0.07 -0.12 -0.25
Debt to Capital Ratio Absolute 0.21 0.20 0.16 0.08 0.03
Efficiency Ratios
Asset Turnover Absolute 0.82 0.45 0.49 0.49 0.56
Fixed Asset Turnover Absolute 5.00 2.70 2.96 2.99 3.46
Inventory Turnover Absolute 2.59 1.25 1.33 1.17 1.31
Current Asset Turnover Absolute 1.67 0.93 1.05 1.08 1.18
Capital Employed Turnover Absolute 0.59 0.61 0.62 0.65 0.73
Working Capital Turnover Absolute 2.25 2.12 2.06 2.34 2.19
Source: COMPANY FILINGS MARKETLINE

Generics in India
Industry Profiles
Table 8: Sun Pharmaceutical Industries Ltd: Key Employees
Name Job Title Board

Aalok Shanghvi Director Non Executive Board
Abhay Gandhi Chief Executive Officer North America Senior Management
Anoop Deshpande Secretary Senior Management
Corporate Relations and CSR, India
Azadar H. Khan Senior Management
Regulatory Affairs
Azadar H. Khan Senior Vice President Senior Management
C. S. Muralidharan Chief Financial Officer Senior Management
Executive Vice President Sun Global
Davinder Singh Senior Management
Operations
Dilip S. Shanghvi Director Executive Board
Dilip S. Shanghvi Managing Director Executive Board
Gautam Doshi Director Non Executive Board
Business Head- Western Europe, Australia
Hellen de Kloet Senior Management
and New Zealand
Jila Breeze Executive Vice President Senior Management
Jila Breeze Global Head - Quality Senior Management
Kirti Ganorkar Chief Executive Officer India Business Senior Management
Pawan Goenka Director Non Executive Board
Pradeep Sanghvi Executive Vice President Senior Management
Pradeep Sanghvi Head US RandD Senior Management
Rama Bijapurkar Director Non Executive Board
Rolf Hoffmann Director Non Executive Board
Sailesh T. Desai Director Executive Board
Sailesh T. Desai Executive Director Executive Board
Sapna Purohit Head Human Resources Senior Management
Sapna Purohit Senior Vice President Senior Management
Sreenivas Rao Head Global Supply Chain Senior Management
Sreenivas Rao Senior Vice President Senior Management
Sudhir V. Valia Director Non Executive Board

Generics in India
Industry Profiles
8.2. Lupin Ltd
Lupin Ltd (Lupin) develops and manufactures generic and branded formulations, biotechnology products, and
active pharmaceutical ingredients (APIs). It has expertise in the areas of cardiovascular, asthma, diabetic
management, pediatrics, central nervous system, gastro-intestinal, anti-infectives, nonsteroidal anti-
inflammatory drugs (NSAIDs), anti-TB, and cephalosporins. The company undertakes extensive research and
development activities of pharmaceuticals for the treatment of migraine, gastrointestinal, psoriasis, central
nervous system, cardiovascular, diabetes, tuberculosis, inflammation and others. Lupin also develops value-
added generic pharmaceuticals based on its platform technologies. The company along with its subsidiaries
operates manufacturing facilities in India, the US, Mexico, and Brazil. Lupin is headquartered in Mumbai,
Maharashtra, India.
(FY2023), an increase of 1.4% over FY2022. The operating profit of the company was INR8,814.6 million in
FY2023, compared to an operating loss of INR13,939.9 million in FY2022. The net profit of the company was
INR4,300.8 million in FY2023, compared to a net loss of INR15,280.4 million in FY2022.
8.2.2. Key Facts
Table 9: Lupin Ltd: key facts
Head office: B/4 Laxmi Towers Bandra Kurla Complex, Bandra (E), Mumbai, Maharashtra, India
Telephone: 912266402222
Fax: 912266402130
Website: www.lupin.com
Ticker: LUPIN
Lupin Ltd (Lupin) undertakes the manufacture and marketing of generic and branded pharmaceutical products,
and active pharmaceutical ingredients (APIs). The company focuses on therapeutic areas such as generics,
biosimilars, specialty, over-the-counter, active pharmaceutical ingredients, global institutional business, tech-
driven offerings. It is one of the leading and fasting growing companies.
Its product portfolio is focused on various therapeutic areas such as cardiovascular, diabetics, asthma, respiratory
diseases, pediatrics, oncology, immunology, metabolic disorders, central nervous system, gastrointestinal,
tuberculosis, infections and non-steroidal anti-inflammatory drugs. The company is also focused on oral,
ophthalmic, dermatology and inhalation product development. The company reports its operations under single
segment, namely, Pharmaceuticals. Lupin’s business includes formulations, active pharmaceutical ingredients
(APIs), generic formulations, and biotechnology products. The company has eight major brands including
Gluconorm-G, Budamate, Ivabrad, Ajaduo, Tonact, Ondero and Rablet-D. The business operates 15 global
manufacturing facilities worldwide. Its APIs products include antibiotics for cephalosporin and non-systemic
gastro-intestinal; Anti-B; cardiovascular products including anti-hypertensive, anti-hyperlipidemic and anti-
thrombotic, for CNS including anti-convulsant, anti-Parkinson and neuropathic pain agent; as well as for analgesics
and anti-gout. The company's biotechnology (biotech) division focuses on manufacturing high quality biologics and
biosimilars.

Generics in India
Industry Profiles
It is developing biosimilar for Etanercept under the brand Enbrel. Lupin’s advanced drug delivery systems business
has developed various platforms including, bio-adhesive / gastro-retentive extended release systems, laser-drilled
extended release systems, bioavailability enhancement systems based on solubilization and nano-particle
technology, matrix or reservoir based release systems, and taste masking technologies for solid and liquid orals.
The company operates manufacturing facilities in India: Aurangabad, Ankleshwar, Dabhasa, Goa, Pithampur,
Jammu, Mandideep, Nagpur, Pune, Sikkim, Tarapur & Vizag U.S; New Jersey; LATAM: Mexico & Brazil. It marketed
the business in Australia, Brazil, Canada, Mexico, the Philippines, and South Africa. Geographically, the company
generates its revenue from three regions, namely, India, the United States, and other. In FY2023, the company's
capital expenditure stood at INR14996.2 million

Generics in India
Industry Profiles
Table 10: Lupin Ltd: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % -7.21 4.84 -1.38 8.19
Operating Income Growth % 131.21 -52.27 156.54 -182.44
EBITDA Growth % 46.51 -26.25 41.77 -89.73
Net Income Growth % 141.40 -144.41 551.59 -225.61
EPS Growth % -21.68 -87.75 1248.34 -80.29
Working Capital Growth % 8.57 -19.88 -10.31 -24.67
Equity Ratios
Gross Margin % 63.63 63.29 61.30 61.06 57.07
Operating Margin % 3.78 9.42 4.29 11.15 -8.50
Net Profit Margin % 1.59 4.14 -1.75 8.02 -9.31
Profit Markup % 174.93 172.38 158.41 156.77 132.96
PBT Margin (Profit Before Tax) % 3.46 9.61 4.93 11.06 -8.36
Return on Equity % 1.85 4.41 -2.15 8.81 -12.57
Return on Capital Employed % 2.82 6.33 4.18 11.14 -10.29
Return on Assets % 1.91 2.24 -1.02 5.01 -6.73
Return on Working Capital % 8.40 17.88 10.65 30.46 -33.34
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute 0.41 0.39 0.15 0.07 0.18
Efficiency Ratios

Generics in India
Industry Profiles
Table 11: Lupin Ltd: Key Employees

Dr. Cyrus Karkaria President Biotechnology Senior Management
President Global Corporate Development and
Dr. Fabrice Egros Senior Management
Growth Markets
Dr. Kamal K. Sharma Vice Chairman Non Executive Board
Dr. Punita Kumar Sinha Director Non Executive Board
President Novel Drug Discovery and
Dr. Rajender Kamboj Senior Management
Development
President Pipeline Management, Legal,
Dr. Sofia Mumtaz Senior Management
Canada, Australia and Japan
Jean-Luc Belingard Director Non Executive Board
Johnny Mikell President Global Quality and Compliance Senior Management
K.B.S. Anand Director Non Executive Board
Manju D. Gupta Chairman Non Executive Board
Mark D. McDade Director Non Executive Board
Naresh Gupta President API and Global TB Senior Management
Nilesh Deshbandhu Gupta Director Senior Management
Nilesh Deshbandhu Gupta Managing Director Senior Management
R.V. Satam Secretary Senior Management
Rajeev Sibal President India Region Formulations Senior Management
Rajendra Chunodkar President Manufacturing Operations Senior Management
Ramesh Swaminathan Chief Financial Officer Executive Board
Ramesh Swaminathan Director Executive Board
Ramesh Swaminathan Head of Corporate Affairs Executive Board
Shahin Fesharaki Chief Scientific Officer Senior Management
Shweta Munjal Head Corporate Communications Senior Management
Shweta Munjal Vice President Senior Management
Spiro Gavaris President US Generics business Senior Management
Sunil Makharia President Finance Senior Management
Thierry Volle President Europe, Middle East and Africa Senior Management
Vinita Gupta Chief Executive Officer Executive Board
Vinita Gupta Director Executive Board
Yashwant Mahadik President Global Human Resources Senior Management

Generics in India
Industry Profiles
8.3. Aurobindo Pharma Ltd
Aurobindo Pharma Ltd (Aurobindo) is a vertically integrated pharmaceutical company that manufactures and
markets generic pharmaceuticals and active pharmaceutical ingredients (APIs). Its product portfolio is spread
across major therapeutic and product categories including antibiotics, anti-retroviral, systemic
gastroenterological, central nervous system, cardiovascular, anti-allergies, anti-diabetics, other therapeutic
areas. The company also produces novel proprietary biocatalysts, vitamins, minerals, dietary supplements,
sports nutrition, functional foods, weight loss products and fermentation-based semi-synthetic products.
Aurobindo operates manufacturing facilities in India, Brazil, Portugal and the US; and R&D, facilities in India and
the US. The company exports products to several countries worldwide. Aurobindo is headquartered in
Hyderabad, Telangana, India.
(FY2023), an increase of 6% over FY2022. In FY2023, the company’s operating margin was 10.1%, compared to
an operating margin of 13% in FY2022. In FY2023, the company recorded a net margin of 7.8%, compared to a
net margin of 11.3% in FY2022.
8.3.2. Key Facts
Table 12: Aurobindo Pharma Ltd: key facts
Head office: Plot no. 2 Maitrivihar, Ameerpet, Hyderabad, Telangana, India

Website: www.aurobindo.com
Ticker: AUROPHARMA
Aurobindo Pharma Ltd (Aurobindo) is a global pharmaceutical company that manufactures generic formulations,
active pharmaceutical ingredients (APIs) and specialty products. The company’s product portfolio is spread over
seven key therapeutic areas, including antibiotics antiretrovirals (ARVs), cardiovascular, central nervous systems
(CNS), anti-diabetics, gastro-enterologicals, and anti-infectives.
It offers a broad portfolio of diversified dosage forms, including prescription and OTC oral solids and liquids,
specialty products such as ophthalmics, injectables and controlled substances in generic formulations. The
company also provides customer centric project-based chemistry services and stability study activities through
AuroSource; novel solutions from discovery to development and commercialization to cost-effective drug
development and manufacturing through Auro Peptides Ltd; and biocatalysts for use in the pharmaceutical and
chemical Industries through AuroZymes.
The company operates through various reportable segment. Its business operations consist of manufacturing and
selling US Formulations, EU Formulations, Growth Markets Formulations, ARV formulations and API business
segment. It markets products and solutions in more than 150 countries. The company has several manufacturing
facilities for APIs-oral and sterile, drug intermediates and formulations. It operates 11 units for APIs/intermediates
and 15 units, including 10 in India, 3 in the US and 1 each in Portugal and Brazil) for formulations.

Generics in India
Industry Profiles
Table 13: Aurobindo Pharma Ltd: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 18.57 18.07 7.26 -5.32
Operating Income Growth % -0.97 21.56 85.08 -57.75
EBITDA Growth % 2.06 25.54 70.03 -49.54
Net Income Growth % -2.41 20.32 87.51 -50.36
EPS Growth % 0.47 18.23 17.28 -18.07
Working Capital Growth % -5.71 51.82 82.15 8.83
Equity Ratios
Gross Margin % 54.95 51.19 54.06 56.39 52.87
Profit Markup % 121.99 104.86 117.67 129.28 112.20
Return on Equity % 20.75 17.02 16.91 24.33 10.78
Return on Assets % 22.97 9.95 10.27 16.99 7.81
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute 0.30 0.36 0.18 -0.01 -0.06
Efficiency Ratios

Generics in India
Industry Profiles
Table 14: Aurobindo Pharma Ltd: Key Employees

Avnit Bimal Singh Director Non Executive Board
B. Adi Reddy Secretary Senior Management
Ch. Venkat Nageswar Director Apitoria Pharma Private Ltd Senior Management
Girish Paman Vanvari Director Non Executive Board
K. Nityananda Reddy Managing Director Executive Board
K. Nityananda Reddy Vice Chairman Executive Board
K. Raghunathan Chairman Executive Board
M Madan Mohan Reddy Director Non Executive Board
M. Sivakumaran Director Non Executive Board
P Sarath Chandra Reddy Director Non Executive Board
P V Ramprasad Reddy Director Non Executive Board
Chief Executive Officer Apitoria Pharma
Sanjay Chaturvedi Senior Management
Private Ltd
Santanu Mukherjee Director Non Executive Board
Santhanam Subramanian Chief Financial Officer Senior Management
Savitha Mahajan Director Non Executive Board

Generics in India
Industry Profiles
8.4. Cipla Limited
Cipla Limited (Cipla or 'the company') is a manufacturer of prescription drugs, veterinary and active
pharmaceutical ingredient products. The company provides products for various therapeutic categories
including dermatology, critical care, cardiovascular, infectious diseases, children's health, and cosmetology,
HIV/AIDS, diabetes, neurosciences, hepatitis, malaria, oncology, ophthalmology, respiratory, osteoporosis and
urology. It also manufactures metered-dose inhaler devices, spacers and related devices. Cipla is engaged in
biosimilar and consumer healthcare. Cipla operates manufacturing facilities in multiple locations across the
world. Cipla offers its products in South Africa, India, and North America and other markets. The company is
headquartered in Mumbai, Maharashtra, India.
(FY2023), an increase of 4.5% over FY2022. In FY2023, the company’s operating margin was 16.3%, compared
to an operating margin of 15.3% in FY2022. In FY2023, the company recorded a net margin of 12.3%, compared
to a net margin of 11.6% in FY2022.
8.4.2. Key Facts
Table 15: Cipla Limited: key facts
Head office: Mumbai Central , Mumbai, India

Telephone: 912224826000
Fax: 912224826120
Website: www.cipla.com
Ticker: CIPLA
Cipla Limited (Cipla or ‘the company’) develops, manufactures, and sells pharmaceutical products. It has over
1,500 and above products across 86 countries in 65 therapeutic categories and over 50 dosage forms.
The company operates through two business segments: Pharmaceutical and New Ventures.
Under Pharmaceuticals segment, the company develops, manufactures, sells and distributes generic and branded
medicines. It also produces active pharmaceutical ingredients (APIs) which manufactures more than 200 generic
and complex APIs. The portfolio covers a range of therapeutic categories including urology, oncology, cardio-
metabolism, child health, infectious diseases & critical care, hepatitis, women’s health, ophthalmology, neuro –
psychiatry, respiratory, asthma, paediatric asthma, COPD, nebulization, and HIV/AIDS. In FY2022, the
Pharmaceuticals segment generated revenue of INR213,512.7 million, which accounted for 97.6% of the
company’s revenue.
Under New Ventures segment include the operations of consumer healthcare, biosimilars and specialty business. It
operates through Cipla BioTec Pvt Ltd (Cipla BioTec), which is involved in the development and research activities,
producing and developing and distributing Cipla Health Ltd (Cipla Health), a consumer healthcare company and
biosimilars. The segment formed CipTec for specialty business in the US. In FY2022, the New Ventures segment
generated revenue of INR5,315.1 million, which accounted for 2.4% of the company’s revenue.

Generics in India
Industry Profiles
Geographically, Cipla classifies its operations into four reportable segments: India, the US, South Africa, and Rest of
the World. Cipla has its presence in Australia, Europe, Kenya, Malaysia, Morocco, Nepal, South Africa, Spain, Sri
Lanka, Uganda, United Kingdom and the US. As of March 2022, the company operated 47 manufacturing facilities
across six countries and 33 regulatory inspections. It also operated 38 national and nine international plants. In
FY2022, India accounted for 45.2% of its total revenue followed by 20.4% from US, 12.1% from South Africa and
22.4% from Rest of the World.

Generics in India
Industry Profiles
Table 16: Cipla Limited: Annual Financial Ratios

Key Ratios 2018 2019 2020 2021 2022
Growth Ratios
Sales Growth % 7.51 4.70 11.84 13.59
Operating Income Growth % 24.10 14.84 56.78 4.16
EBITDA Growth % 12.65 3.61 32.71 2.75
Net Income Growth % 8.31 1.23 55.50 4.65
EPS Growth % -4.65 -5.58 53.29 9.67
Working Capital Growth % 23.97 -15.51 17.84 13.88
Equity Ratios
Gross Margin % 57.84 59.08 59.51 56.53 56.07
Profit Markup % 137.19 144.36 146.97 130.04 127.63
Return on Equity % 9.91 10.18 9.81 13.12 12.08
Return on Assets % 12.34 6.53 6.49 9.85 9.63
Liquidity Ratios
Leverage Ratios
Net Debt to Equity Absolute 0.14 0.11 0.07 -0.09 -0.17
Efficiency Ratios

Generics in India
Industry Profiles
Table 17: Cipla Limited: Key Employees

Achin Gupta Chief Executive Officer India Business Senior Management
Adil Zainulbhai Director Non Executive Board
Ashish Adukia Global Chief Financial Officer Senior Management
Ashok Sinha Director Non Executive Board
Dinesh Jain Head Corporate Finance Senior Management
Dinesh Jain Senior Vice President Senior Management
Geena Malhotra Chief Technology Officer Global Senior Management
M.K. Hamied Vice Chairman Non Executive Board
Mandar Purushottam Vaidya Director Non Executive Board
Nishant Saxena Head Emerging Markets and Europe Senior Management
P. R. Ramesh Director Non Executive Board
Paul Miller Chief Executive Officer Cipla South Africa Senior Management
Paul Miller Regional Head- Africa and Access Senior Management
Peter Mugyenyi Director Non Executive Board
Pradeep Bhadauria Chief Scientific Officer Global Senior Management
Pradeep Bhadauria President Senior Management
Punita Lal Director Non Executive Board
Raju Mistry Chief People Officer Global Senior Management
Raju Mistry President Senior Management
Robert A. Stewart Director Non Executive Board
S. Radhakrishnan Director Non Executive Board
Samina Hamied Vice Chairperson Executive Board
Shivam S Puri Chief Executive Officer Cipla Health Senior Management
Swapn Malpani Global Head-Supply Chain and Procurement Senior Management
Swapn Malpani Joint President Senior Management
Umang Vohra Chief Executive Officer Global Executive Board
Umang Vohra Director Executive Board
Umang Vohra Managing Director Executive Board
Vijayasarathi Ramaswami Global Head-Quality Senior Management
Yusuf K Hamied Chairman Non Executive Board

Generics in India
Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 18: India size of population (million), 2018–22
Year Population (million) % Growth

2018 1,298.0 1.1%
2019 1,312.2 1.1%
2020 1,326.2 1.1%
Table 19: India gdp (constant 2005 prices, $ billion), 2018–22
Year Constant 2005 Prices, $ billion % Growth

2018 2,146.3 7.8%
2019 2,315.9 7.9%
2020 2,500.7 8.0%
Table 20: India gdp (current prices, $ billion), 2018–22
Year Current Prices, $ billion % Growth

2018 3,453.7 13.8%
2019 3,932.6 13.9%
2020 4,509.7 14.7%
Table 21: India inflation, 2018–22
Year Inflation Rate (%)

2018 6.3%
2019 6.3%
2020 6.2%
Table 22: India consumer price index (absolute), 2018–22

Generics in India
Industry Profiles
Year Consumer Price Index (2005 = 100)

2018 278.7
2019 296.3
2020 314.6
Table 23: India exchange rate, 2018–22
Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)

2018 68.4090 80.6918
2019 70.3943 78.8440
2020 74.1023 84.5848
2021 73.9362 87.4531
2022 78.5979 82.6849

Generics in India
Industry Profiles
Appendix
9.2. Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Generics in India
Industry Profiles
9.3. Industry associations
9.3.1. IFPMA - International Federation of Pharmaceutical Manufacturers and Associations
15 chemin Louis-Dunant, PO Box 195, 1211 Geneva 13, CHE

Tel.: 41 22 338 3200
Fax: 41 22 338 3299
www.ifpma.org
9.3.2. Indian Drug Manufacturers' Association (IDMA)
102, Poonam Chambers,'A' Wing, 1st Floor, Dr. A. B. Road, Worli, Mumbai - 400 018, IND
Tel.: 91 22 2494 4624
Fax: 91 22 24950723
https://idma-assn.org
9.4. Related MarketLine research
9.4.1. Industry Profile
Global Generics
Generics in Europe
Generics in Asia-Pacific
Generics in Japan
Generics in China

Generics in India
Industry Profiles
About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries and
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coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
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Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
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With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
to deliver quality data in an instant.
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MarketLine Industry Profile

Reference Code: 0102-0334

Publication Date: July 2023

Primary NAICS: 325412

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Market volume

1.4. Market volume forecast

1.5. Geography segmentation

1.6. Market rivalry

1.7. Competitive landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

1.1. Market value ................................................................................................................................................2

1.2. Market value forecast ..................................................................................................................................2

1.3. Market volume.............................................................................................................................................2

1.4. Market volume forecast...............................................................................................................................2

1.5. Geography segmentation.............................................................................................................................2

1.6. Market rivalry...............................................................................................................................................2

1.7. Competitive landscape.................................................................................................................................2

2.1. Market definition .........................................................................................................................................8

2.2. Market analysis ............................................................................................................................................8

3.1. Market value ..............................................................................................................................................10

3.2. Market volume...........................................................................................................................................11

4.1. Geography segmentation...........................................................................................................................12

5.1. Market value forecast ................................................................................................................................13

5.2. Market volume forecast.............................................................................................................................14

6. Five Forces Analysis 15

6.1. Summary ....................................................................................................................................................15

6.2. Buyer power...............................................................................................................................................16

6.3. Supplier power ...........................................................................................................................................17

6.4. New entrants .............................................................................................................................................19

6.5. Threat of substitutes ..................................................................................................................................20

6.6. Degree of rivalry.........................................................................................................................................21

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

7.1. Who are the leading players? ....................................................................................................................23

7.2. What are the strengths of the leading players?.........................................................................................23

8.1. Sun Pharmaceutical Industries Ltd.............................................................................................................26

8.2. Lupin Ltd.....................................................................................................................................................29

8.3. Aurobindo Pharma Ltd ...............................................................................................................................33

8.4. Cipla Limited...............................................................................................................................................36

9.1. Country data ..............................................................................................................................................40

9.3. Industry associations..................................................................................................................................43

9.4. Related MarketLine research .....................................................................................................................43

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 5

Table 2: India generics market volume: %, 2017–22 11

Table 3: India generics market geography segmentation: $ million, 2022 12

Table 4: India generics market value forecast: $ million, 2022–27 13

Table 5: India generics market volume forecast: %, 2022–27 14

Table 6: Sun Pharmaceutical Industries Ltd: key facts 26

Table 7: Sun Pharmaceutical Industries Ltd: Annual Financial Ratios 27

Table 8: Sun Pharmaceutical Industries Ltd: Key Employees 28

Table 9: Lupin Ltd: key facts 29

Table 10: Lupin Ltd: Annual Financial Ratios 31

Table 11: Lupin Ltd: Key Employees 32

Table 12: Aurobindo Pharma Ltd: key facts 33

Table 13: Aurobindo Pharma Ltd: Annual Financial Ratios 34

Table 14: Aurobindo Pharma Ltd: Key Employees 35

Table 15: Cipla Limited: key facts 36

Table 16: Cipla Limited: Annual Financial Ratios 38

Table 17: Cipla Limited: Key Employees 39

Table 18: India size of population (million), 2018–22 40