Products From nine pharmaceutical production operations in India as well as a Zydus Cadila develops and manufactures a large range

of pharmaceuticals as well as diagnostics, herbal products, skin care products and other OTC products. The company also makes EverYuth Naturals Walnut Scrub & Ultra Mild Scrub -India 's leading scrub brand , EverYuth Naturals Golden Glow Peel-Off-the no. 1 in the peel-off category and a face wash range .It is also the maker of Sugar Free, India's most popular artificial sweetener,[1] and Nutralite, India's most popular cholesterol-free margarine.[2] The company makes active pharmaceutical ingredients at three sites in India: Ankleshwar plants - Zydus Cadila's plant complex at Ankleshwar in Bharuch District of Gujarat, has been producing drug material since 1972. There are around 10 plants in the complex, which is ISO 9002 and ISO 14001 certified as well as FDA Approved. Total plant capacity at Ankleshwar is around 180 million tonnes. Vadodara plant - Zydus Cadila's plant at Dhabhasa, in Vadodara District's Padra taluka (in the eastern part of the district) in Gujarat, was commissioned in 1997 by a company called Banyan Chemicals, and acquired by Zydus Cadila in 2002. The plant has a 90 million tonne capacity. It is an FDA-approved facility that is also approved to WHO GMP guidelines. Patalganga plant - Zydus Cadila acquired an API plant at Patalganga in Maharashtra state, 70 km from Mumbai, about 859 km from Nagpur, in the 2001 German Remedies deal. This plant operates to WHO GMP standards.

Zydus cadilla

also known as Cadila Healthcare is an Indian pharmaceutical company located in Gujarat. The company's 1QFY2010 results show the net sales at Rs880.3cr which is higher than the estimated Rs773cr. The net profit was Rs124.8cr which was increase of 39%; the increase was on account of higher sales and improvement in the OPM.

India's Domestic Pharmaceutical Market (12 Months Ended January 2009) Company Size ($ Market Growth Rate (%) Billion) Share (%) Total Pharma Market 609 100.0 9.9 Zydus Cadila .24 3.6 6.8 Source: ORG IMS

Future Scenario With several companies slated to make investments in India, the future scenario of the pharmaceutical industry in looks pretty promising. The country's pharmaceutical industry has tremendous potential of growth considering all the projects that are in the pipeline. Some of the future initiatives are:

According to a study by FICCI-Ernst & Young India will open a probable US$ 8 billion market for MNCs selling expensive drugs by 2015 The study also says that the domestic pharma market is likely to reach US$ 20 billion by 2015 The Minister of Commerce estimates that US$ 6.31 billion will be invested in the domestic pharmaceutical sector Public spending on healthcare is likely to raise from 7 per cent of GDP in 2007 to 13 per cent of GDP by 2015 Dr Reddy's Laboratories has tied up with GlaxoSmithKline to develop and market generics and formulations in upcoming markets overseas Lupin, a Mumbai based pharmaceutical company is looking to tap opportunities of about US$ 200 million in the US oral contraceptives market Due to the low cost of R&D, the Indian pharmaceutical off-shoring industry is designated to turn out to be a US$ 2.5 billion opportunity by 2012

Challenges Every industry has its own sets of advantages and disadvantages under which they have to work; the pharmaceutical industry is no exception to this. Some of the challenges the industry faces are:

Regulatory obstacles Lack of proper infrastructure Lack of qualified professionals Expensive research equipments Lack of academic collaboration Underdeveloped molecular discovery program Divide between the industry and study curriculum

Government Initiatives The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are:

Pharmaceutical units are eligible for weighted tax reduction at 150% for the research and development expenditure obtained. Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government. The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research The Department of Pharmaceuticals is mulling the creation of drug research facilities which can be used by private companies for research work on rent

Introduction of import/export The importance of foreign trade is more than ever before in todays globalised world. With the opening of Indian economy in the past two decades, imports and exports have gathered momentum and the government is providing adequate policy framework, assistance and incentives to people, companies and organisations engaged in foreign trade. The government also plays a crucial role in providing infrastructure to nurture trade, and in engaging with foreign governments and international trade organisations to ensure a level playing field for Indian traders. What is import and who are importers? According to the Customs Act, 1962, "import", with its grammatical variations and cognate expressions, means bringing into India from a place outside India; "imported goods" means any goods brought into India from a place outside India but does not include goods which have been cleared for home consumption; and "importer", in relation to any goods at any time between their importation and the time when they are cleared for home consumption, includes any owner or any person holding himself out to be the importer. What is export and who are exporters? The Customs Act, 1962, says "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India; "export goods" means any goods which are to be taken out of India to a place outside India; and "exporter", in relation to any goods at any time between their entry for export and the time when they are exported, includes any owner or any person holding himself out to be the exporter. Pharma Export In the recent years, despite the slowdown witnessed in the global economy, exports from the pharmaceutical industry in India have shown good buoyancy in growth. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8.25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of India's pharmaceutical growth during 2009-2010.

Investment and business opportunities in the pharmaceutical sector Multipurpose chemical plant for bulk production of intermediate inputs such as paracetamol and aspirin Processing of locally available sugar, salt (sodium chloride) and ethanol to pharmaceutical grade for pharmaceutical industry use Commercial processing of traditional medicines: diverse flora exists in the country. Establishment of a chemical plant to manufacture anti-tuberculosis, anti-leprosy, antibiotic rifampicin from the penultimate state. Manufacture of Quinine by extraction from Cinchona bark and subsequent purification and synthesis to Quinine Sulphate Extraction of Hecogenin from sisal waste and synthesis of betamethasone from hecogenin Manufacture of disposable surgical gloves, latex gloves and condoms. Manufacture of medical equipment and supplies such as syringes, catheters and gauzes for the regional market.

Indian Pharmaceutical Industry Trends 2010 Indian domestic pharmaceutical market has seen growth at a CAGR of about 12% in the last 5 years. About 67 Million Indians are expected to reach the age of 67 years by 2011. People of this age group spends around 3 to 4 times more on drugs than people in younger age groups. This indicates substantial growth of Indian pharmaceutical industry. Patented drug are expected to have a 10% market share of pharmaceutical industry in 2010. Incomes of people in rural India is on a rise and the distribution network of drugs is also very strong. These factors are contributing to a high growth of India's rural pharmaceutical market. The positive approach towards product patent product has encouraged the Indian pharmaceutical companies to invest more in Research and Development. Indian pharmaceutical market is expected to have compound annual growth rate of 9.5 per cent by 2015.

Indian Pharmaceutical Industry- Future Perspectives Future trends of Indian pharmaceutical industry seems to be in positive tone. Consumer spending on healthcare services and products has increased in India due to the increasing affordability, shifting disease patterns and modest healthcare reforms. Healthcare budget of an average Indian household is expected to grow from 7% in 2005 to 13% in 2025. The future trends of Indian pharmaceutical industry can be listed as under.

By 2015, India will probably open a US$ 8 billion market for multi national pharmaceutical companies selling expensive drugs as predicted by the FICCI-Ernst & Young India study. The domestic India pharma market is likely to reach US$ 20 billion by 2015. A whopping amount of US$ 6.31 billion will be invested in the Indian pharmaceutical industry as per the estimates of the Ministry of Commerce, Government of India. Indian pharmaceutical off-shoring industry is predicted to be a US$ 2.5 billion opportunity by 2012 all because of low cost of R&D. Patented drugs are predicted to capture up to a 10% share of the total Indian pharmaceutical industry by 2015 with a market size of US$2 billion. The branded generics market will continue to dominate the Indian pharmaceutical industry. Sixty one drugs worth US $ 80 billion will go off patent at the US Patent and Trademark Office between 2011 and 2013. Indian pharmaceutical industry is all set to gain from the patent expiry of some blockbuster drugs by producing their generic equivalents. However, the influence of physicians will remain high that will ensure fair competition on the basis of product quality and scientific detailing. By 2015, the specialty and super-specialty therapies will account for 45% of the pharma market. The growing lifestyle disorders, particularly metabolic disorders like diabetes and obesity as well as coronary heart disease and hypertension, cardiovascular, neuropsychiatry and oncology drugs will gain considerable significance. Although there will be a shift towards specialty therapies, mass therapies will remain important in the Indian pharmaceutical industry. This will be, primarily due to the gap between the prevalence of common diseases and their treatment rates. Diseases like anaemia, diarrhoea, gastro-intestinal & respiratory problems, acute pain, infections etc. is suffered by a large number of population. The growing income levels will also increase spending on basic healthcare and the consumption of mass therapy drugs for acute ailments.

The Indian pharmaceuticals industry has grown reasonably during the past decade and has the potential to transform itself over the next decade too. The domestic pharma market of India will play a crucial role in fighting the growing diseases. However, the full potential of Indian pharmaceuticals can only be achieved through sustained, progressive and collaborative efforts by the government and the pharmaceutical industry as a whole.

Nature of Competition in Pharmaceutical Industry There is huge competition based on the price for the product among the various companies of this industry. There are also issues related to the copying of products, influencing the customers, misinformation about the product etc, by the various competitors of these industries. The industry wants to have a competitive advantage over one another. There is also huge competition for the skilled laborers and innovative technology. There is a huge competition from China, Germany, US etc, in the market and the companies have to compete with these countries. To become part of the World Trade Organisation, India signed the General Agreement on Tariffs and Trade (GATT) in December 1994, packaged with it the trade related aspects of intellectual property rights. By virtue of signing the GATT, India was bound to recognise only product patents. Protected by the 1970 Patents Act, Indian pharmaceutical companies survived solely on drugs that were reverse engineered. The growth of the industry was dependent on the generics market only.

Problems Faced by Indian Pharmaceutical Industry Indian pharmaceutical industry is mainly dominated by Chinese pharmaceutical industry as the cost of the products is lower than the Indian pharmaceutical companies. But quality wise Indian industry is far ahead than the Chinese market, but lack of recognition is causing problem for the industry. The drug price control Act was establish for the interest of the consumers of drugs but it was a hurdle for the manufacturers of Pharmaceutical Industry as the price of raw material are rising at an increasing rate but the cost of the products remained the same. Thus, such regulations are causing hurdles for making profit for this industry and most of the companies think that it is unfavorable for them. There are shortage of labor in the region like Gujarat and Himachal Pradesh. Due to settings up of many

pharmaceutical industries in these regions there is shortage for the labor. The skilled and unskilled labors are not easily available in these regions and thus causes hurdle for the industry to produce more.

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